Nvidia-Google AI chip rivalry grows

META IN TALKS TO SPEND BIG ON GOOGLE'S CHIPS

- NICK TURNER

META PLATFORMS IS in talks to spend billions on Google's AI chips, The Information reported, adding to a monthslong share rally as the search giant has made the case it can rival Nvidia as a leader in artificial intelligence technology.

A deal would signal growing momentum for Google's chips and long-term potential to challenge Nvidia's market dominance, after the company earlier agreed to supply up to 1 million chips to Anthropic PBC.

Google owner Alphabet is on track to hit a $4 trillion market valuation for the first time when trading opens in New York on Wednesday. Nvidia's shares were down about 4% in premarket trading.

Meta is in discussions to use the Google chips known as tensor processing units, or TPUs tres in 2027, The Information reported, citing an unidentified person familiar with the talks. Meta also may rent chips from Google's cloud division next year, the news outlet said.

An agreement would help establish TPUs as an alternative to Nvidia's chips, the gold standard for big tech firms and startups from Meta to OpenAI that need computing power to develop and run artificial intelligence platforms.

Nvidia's stock is already facing headwinds as investors fear a broader AI bubble.