Meta's Potential Adoption of Google TPUs: Market Impact on GOOG, NVDA, and META

The event centers on Meta Platforms (META) considering deploying Google’s Tensor Processing Units (TPUs) in its data centers, competing with Nvidia (NVDA) GPUs [2]. This news drove Alphabet (GOOG) shares up ~2% in after-hours trading to $327, while NVDA fell ~2.05% AH [1]. GOOG has seen a strong rally of ~29.91% from mid-September to November 24, supported by AI growth momentum (e.g., Gemini 3 reception) [0]. Meta’s potential switch to TPUs could lead to significant cost savings, boosting its EPS [1].

Cross-domain connections include: (1) AI chip competition intensifying between GOOG and NVDA, with Meta as a key customer; (2) GOOG’s AI chip business expanding beyond internal use to third-party clients; (3) META’s cost efficiency strategy potentially reducing dependency on NVDA. GOOG’s rally reflects investor optimism about its AI ecosystem, while NVDA faces competitive pressure [0][1].

: (1) NVDA: Potential loss of Meta as a customer could impact revenue [1]; (2) GOOG: Rally may be premature as the deal is not finalized [0]; (3) META: Integration risks (software reconfiguration, training costs) could delay expected EPS gains [1].
: (1) GOOG: Expansion of AI chip market share; (2) META: Cost savings from TPU adoption; (3) Industry: Increased competition driving innovation in AI chips.

GOOG has rallied ~29.91% since mid-September. Meta is in talks to use Google’s TPUs, leading to GOOG’s AH rise and NVDA’s temporary drop. Key data points: GOOG closed at $318.47 (+6.28% daily), META at $613.05 (+3.16% daily), NVDA at $182.55 (+2.05% daily) [0]. The deal is multi-billion dollars, starting in 2027 with rental capacity in 2026 [1]. No official confirmation from Meta or Google yet.