Google Plans to Directly Sell TPUs to Meta, NVIDIA's Market May Face Further Erosion

On November 25th, as per foreign media reports, Alphabet, the parent company of Google (GOOG.O), is engaged in negotiations with Meta (META.O) and other companies. It is planning to open up the usage rights of its self-developed Tensor AI chip to them, aiming to further expand the competitive landscape against NVIDIA (NVDA.O). In response to this news, Google and its AI chip partner Broadcom witnessed a rise in their share prices after hours, while NVIDIA and AMD's stock prices declined accordingly. Traditionally, Google only deployed its self-developed TPUs in its own data centers and rented out computing power to customers. However, local time on Monday night, The Information, a U.S. tech media, reported that Google is now making plans to directly sell TPU chips to customers for deployment in their own data centers. Meta is considering purchasing Google's TPU chips worth billions of dollars starting from 2027 for use in its data centers. It is also planning to start renting TPU computing power from Google Cloud as early as 2026. Currently, Meta's AI business mainly relies on NVIDIA GPUs. For Google and Broadcom, which jointly designed the Tensor chip, this indicates a potentially huge emerging market. It may also bring significant competitive pressure to NVIDIA and AMD, potentially affecting their sales and pricing power. (Jinse)