Meta in Talks to Use Google’s AI Chips, Pressuring Nvidia and AMD Shares
Nov 25, 2025
Meta, the parent company of Facebook, is reportedly in discussions with Alphabet (Google) to use Google’s custom AI chips, known as tensor processing units (TPUs), in its data centers starting in 2027. The potential deal could see Meta spending billions of dollars to deploy these chips, according to reports from The Information.
In addition to possibly purchasing TPUs for its data centers, Meta is also considering renting Google’s AI chips through Google Cloud as early as next year to test the technology before a wider rollout.
Currently, Meta mainly relies on AI chips from Nvidia. News of the possible switch to Google’s hardware caused shares of Nvidia and AMD, another chipmaker, to fall. Meanwhile, Alphabet’s stock price rose on the news.
This development signals growing competition in the AI chip market, which is important for big tech companies as they expand their use of artificial intelligence.
Why is Meta interested in using Google’s AI chips?
Meta is exploring Google’s AI chips as an alternative to its current suppliers to improve performance, possibly reduce costs, and avoid relying on a single provider.
How does this affect companies like Nvidia and AMD?
If Meta shifts part of its business to Google’s chips, it could mean less business for Nvidia and AMD, which is why their stock prices fell after the news.
When could Meta start using Google’s chips?
Meta may begin renting Google’s AI chips next year for testing, with wider use in its data centers expected from 2027.
What are tensor processing units (TPUs)?
TPUs are special computer chips made by Google to speed up artificial intelligence tasks, especially in data centers.
Sources
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