Google plans to sell TPUs directly to Meta, potentially further eroding Nvidia's market share.

According to Odaily Planet Daily, Alphabet (GOOG.O), Google's parent company, is in talks with companies like Meta (META.O) to grant them access to its self-developed Tensor AI chips, further expanding its competitive landscape with Nvidia (NVDA.O). Following this news, Google and its AI chip partner Broadcom rose in after-hours trading, while Nvidia and AMD shares fell. Traditionally, Google has only deployed its self-developed TPUs in its own data centers and leased computing power to customers. However, US tech media outlet The Information reported on Monday evening that Google now plans to sell TPU chips directly to customers for deployment in its own data centers. Meta is considering purchasing billions of dollars worth of Google TPU chips for its data centers starting in 2027, and also plans to lease TPU computing power from Google Cloud as early as 2026. Currently, Meta's AI business mainly relies on Nvidia GPUs. This represents a potentially huge emerging market for Google and Broadcom, who co-design the Tensor chips. This could create significant competitive pressure on Nvidia and AMD, potentially impacting the latter's sales revenue and pricing power. (Jinshi)