Nvidia Shares Dip As Meta Considers Google TPU Shift

Benzinga

Nvidia shares slipped after reports that Meta may adopt Google’s TPU chips, while Alphabet rallied on the news. Meta is considering TPUs for its data centers by 2027 and may rent them through Google Cloud next year, adding competitive pressure even as Nvidia remains the dominant AI GPU supplier. The shift comes amid investor debate over a potential AI bubble.

Transcript

00:00It's Benzinga, bringing Wall Street to Main Street.

00:02NVIDIA shares fell after reports that Mayden may shift to using Google-designed chips, according to CNBC.

00:07Mayden fell 3.6% in Tuesday's pre-market trading, while Alphabet rose 4.2% after a more than 6% rally on Monday.

00:14Mayden is winning the use of Google's TPUs in its data centers by 2027, and may rent the chips from Google Cloud next year.

00:21Google said demand is rising from both its custom TPUs and NVIDIA GPUs, and that it will continue supporting both.

00:27Google first introduced TPUs in 2018 and has released newer versions tailored for AI workloads, giving the company an efficiency edge.

00:35NVIDIA remains the dominant GPU supplier for AI, but companies are seeking more diversified chip sources.

00:40The stock move comes as investors debate, but they're forming an AI bubble is forming.

00:44For all things money, visit Benzinga.com.

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