SAN FRANCISCO: Meta Platforms is reportedly in discussions with Google to purchase billions of dollars’ worth of the Alphabet-owned company’s AI chips for use in its data centers starting in 2027, according to The Information. The deal could also include renting Google’s chips as early as next year.
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The potential partnership marks a major shift for Google, which currently uses its tensor processing units (TPUs) only in its own data centers. Expanding TPU usage to external customers would position Google as a serious competitor to semiconductor giant Nvidia, which currently dominates the AI chip market.
SCOOP: Meta is in talks for a multi-billion deal to use Google’s TPUshttps://t.co/Hm2tFGufEB pic.twitter.com/Vh3bd8VHvy
— Anissa Gardizy (@anissagardizy8) November 25, 2025
Google Cloud executives believe the move could capture up to 10% of Nvidia’s annual revenue, worth billions of dollars. Meta is one of Nvidia’s largest customers, with plans to spend up to $72 billion on AI chips this year alone. The partnership could significantly disrupt the AI hardware market and provide a new growth avenue for Google.
NVIDIA DROPS AFTER META–GOOGLE CHIP BOMBSHELL
Meta is reportedly in talks to bring Google’s TPUs into its data centers by 2027, a direct challenge to NVIDIA’s GPU dominance.
The market reacted instantly:
• $NVDA -2.5%
• $GOOGL +2.5% premarketIf Meta diversifies away from… pic.twitter.com/VWS6KS8uNZ
— Nexus (@Nexus_Epoch) November 25, 2025
The announcement of talks has already influenced markets, with Alphabet shares rising over 4% in premarket trading, putting the company on track for a potential $4 trillion valuation. Nvidia shares fell 3.2%, while Broadcom, a key partner in manufacturing Google’s AI chips, rose 2%.
BREAKING : $META IS CONSIDERING SPENDING BILLIONS OF DOLLARS ON $GOOGL TPUS
-Key points:
-Google is significantly ramping up its in-house AI chip development to challenge Nvidia directly.
-The company is expanding beyond its existing TPUs with a new, more aggressive push… pic.twitter.com/bsMYXVPdc9
— FetzInvests (@FetzInvests) November 24, 2025
Demand for custom AI chips has surged as businesses seek alternatives to Nvidia’s supply-constrained and costly GPUs. Recently, AI firm Anthropic expanded its deal with Google to use up to one million TPUs, valued at tens of billions of dollars. Analysts say Google’s momentum, bolstered by investors like Warren Buffett’s Berkshire Hathaway and the launch of its Gemini 3 AI model, has strengthened its position as a cloud and AI technology leader.
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If finalized, the deal could transform the AI chip landscape, giving Meta a competitive alternative to Nvidia and providing Google with a new revenue stream for its TPU business.