Jensen Huang, NVIDIA founder and CEO, has a Q&A session at a press conference during the APEC CEO summit on October 31, 2025 in Gyeongju, South Korea.
Woohae Cho | Getty Images News | Getty Images
Nvidia shares fell on Tuesday after The Information reported that Meta is considering using chips designed by Google.
Shares of Nvidia were 3.6% lower in premarket trade. Google-parent Alphabet was trading 2.6% higher.
On Monday, The Information reported that Meta is considering using Google’s tensor processing units (TPUs) in its data centers in 2027. Meta may also rent TPUs from Google’s cloud unit next year, the publication reported.
Google launched its first-generation TPU in 2018 and it was initially designed for its own internal use for its cloud computing business. Since then, Google has launched more advanced versions of its chip that are designed to handle artificial intelligence workloads.
TPUs are a customized chip and experts say this gives Google an advantage over rivals as it can offer customers a highly efficient product for AI.
If Meta uses the TPUs, it would be big win for Google and potential validation of the technology.
Nvidia remains the market leader with its graphics processing units (GPUs) that have become the main piece of hardware underpinning the huge AI infrastructure buildout. While Nvidia’s dominance is unlikely to be dislodged in the near term, Google’s TPUs add further competition into the AI semiconductor market.
Companies building AI infrastructure have been searching for a more diversified supply of chips to reduce reliance on Nvidia.
Meta is among the biggest spenders on AI infrastructure, with the company projecting its capital expenditure to stand between $70 billion to $72 billion this year.