Meta's Consideration of Google TPUs: AI Chip Competition and Market Impact Analysis

On 2025-11-24, a Reddit post reported Meta Platforms (META) is considering Google’s Tensor Processing Units (TPUs) to replace NVIDIA (NVDA) chips in its data centers [1]. This news was confirmed by Analytics India Magazine (Meta in talks to spend billions on TPUs) and MarketWatch (highlighting AI chip competition) [3,4].

• Alphabet (GOOG):
  Closed at $318.47 (+6.28%) with 2.3x average volume, reflecting investor optimism [0].
• Meta (META):
  Gained 3.16% to $613.05, aligning with Reddit claims of potential cost savings [0,1].
• NVIDIA (NVDA):
  Initially dipped in after-hours but closed at $182.55 (+2.05%), indicating long-term confidence [0].
• Tech Sector:
  Rose 2.08% as the second-best performing sector [0].

1. AI Chip Competition:
   Google’s TPUs emerge as a viable alternative to NVIDIA’s GPUs, signaling a maturing market [3,4].
2. Investor Sentiment:
   Reddit users reported FOMO to buy GOOG shares, contributing to short-term price movements [1].
3. Valuation:
   NVDA (P/E 45.19) remains most valued vs GOOG (31.44) and Meta (27.10) [0].

• Unconfirmed Deal:
  No official confirmation of Meta-Google talks exists [3,4].
• Execution Risks:
  Google may face TPU production scaling challenges [3].
• FOMO Dangers:
  Investors should avoid impulsive decisions based on unconfirmed news [1].
• NVIDIA’s Position:
  Dominant market share ($4.44T cap) remains intact for now [0].

• Formal deal confirmation
• Exact financial terms/timeline for TPU deployment
• NVIDIA’s strategic response [4]