Nvidia defends AI lead after $250 billion jolt on 'Google deal' buzz

Nvidia, the AI chip giant, publicly defended its market dominance after reports surfaced of Meta Platforms considering billions in spending on Google’s competing AI chips.

- TBG NETWORK

The development sent Nvidia's stock down significantly, while Alphabet shares rose. Google’s Tensor Processing Units (TPUs) are emerging as a serious challenger, with Meta potentially renting them from Google Cloud. Nvidia publicly responds to “losing” $250 billion to “Google deal,” declares: We are...

Nvidia, the $4 trillion chip-maker that has dominated the AI boom, broke from its usual playbook on Tuesday by issuing a public statement defending its market position—a move triggered by reports that one of its biggest customers, Meta Platforms, is in advanced talks to spend billions on Google’s competing AI chips. The news hammered Nvidia’s stock, erasing roughly $250 billion in market value. Meanwhile, Alphabet shares climbed as Wall Street began viewing Google’s TPU processors as a credible alternative to Nvidia's stranglehold on AI hardware.