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

According to Deep Tide TechFlow news on November 25, Jin10 reported that Google’s parent company Alphabet(GOOG.O) is in talks with companies like Meta(META.O) to open up the rights to use its self-developed Tensor AI chips, further expanding the competitive landscape with NVIDIA(NVDA.O). As a result of this news, Google's stock and its AI chip partner Broadcom rose after hours, while NVIDIA and AMD’s stock prices fell in response. Traditionally, Google has only deployed its self-developed TPUs in its own data centers and leased the computing power to customers. However, U.S. tech media The Information reported on Monday evening local time that Google now plans to sell TPU chips directly to customers for deployment in their own data centers. Meta is considering purchasing Google TPU chips worth billions of dollars for its data centers starting in 2027, while also planning to rent TPU computing power from Google Cloud as early as 2026. Currently, Meta's AI business primarily relies on NVIDIA GPUs. This represents a potentially huge emerging market for Google and Broadcom, who co-design Tensor chips. It may also create significant competitive pressure on NVIDIA and AMD, potentially impacting the latter's sales and pricing power.