Google’s TPU Expansion Shakes Chip Market as Alphabet Shares Rise, Nvidia and AMD Dip
Alphabet's stock surged 2.6% in after-hours trading following reports of its aggressive push into the AI chip market. The tech giant is now marketing its custom tensor processing units (TPUs) to Meta Platforms and major financial institutions—a direct challenge to Nvidia's dominance. Meta is reportedly negotiating a multibillion-dollar deal to integrate Google's TPUs into its data centers by 2027, potentially shifting away from its heavy reliance on Nvidia GPUs.
The strategic pivot marks Google's transition from exclusively using TPUs in its own cloud infrastructure to selling them as standalone hardware. The MOVE capitalizes on growing enterprise demand for secure, compliant AI solutions. Nvidia and AMD shares fell 1.5% and 1.7% respectively, reflecting market skepticism about their competitive positioning against Google's vertically integrated approach.
