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Meta in talks to spend billions on Google chips
Meta aims to cut costs and improve margins by shifting to Google-designed AI chips, seeking to challenge Nvidia's dominance with a potential market share of 10%, analysts say.
- Meta Platforms is in talks to spend billions on Alphabet-designed TPUs for its data centres, including renting Google Cloud chips as early as next year.
- Meta's interest follows rising demand for custom chips in recent years as a major AI-chip buyer, while Google has built momentum in recent months with Berkshire Hathaway investment and cloud growth.
- Markets moved immediately, with stocks reacting as Alphabet and Meta shares rose, Broadcom gained 2%, Nvidia fell 3.2%, and Anthropic last month expanded a Google chip deal.
- The move could capture market share from Nvidia, as Alphabet shifts from customer to competitor and some Google Cloud executives say it could capture 10% of Nvidia's annual revenue despite nearly two decades of entrenched code.
- High demand and limited production shape chip competition as Nvidia faces manufacturing shortfalls amid excess demand, while more than 4 million developers rely on Nvidia's CUDA platform.
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Nvidia Defends AI Dominance Amid Rising Google Chip Momentum
Nvidia pushed back Tuesday against rising Wall Street concerns that Google’s in-house AI chips could challenge its dominance, insisting its GPUs remain “a generation ahead” of the industry. The statement came after Nvidia shares fell 3% on reports that Meta may adopt Google’s tensor processing units (TPUs) for future data centers. "You can't do this to me...I started this bull market" - Jensen Huang pic.twitter.com/8jP0NhwSXe— Morning Brew ☕️ (@…
Coverage Details
Total News Sources49
Leaning Left6Leaning Right7Center5Last UpdatedBias Distribution39% Right
Bias Distribution
- 39% of the sources lean Right
39% Right
L 33%
C 28%
R 39%
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