Meta’s Potential Google TPU Deal: Market Impact on GOOG and NVDA

On November 24, 2025 (EST), Meta Platforms (META) entered advanced talks with Alphabet Inc. (GOOG) for a multibillion-dollar deal to use Google’s Tensor Processing Units (TPUs) in its data centers [4,6]. The deal includes potential cloud-based TPU rentals via Google Cloud starting in 2026 and in-house deployment in 2027 [5].

Market reactions were immediate: GOOG shares closed up ~0.98% to $321.60 with above-average volume [0], while NVIDIA (NVDA) shares fell ~4.56% to $174.23 with below-average volume [1]. Reddit discussions highlighted claims of GOOG’s 100% rise in 6 months and plans to surpass NVDA by year-end, but these are unverified due to lack of historical price data.

Meta’s consideration of TPUs stems from cost savings—Google’s chips are cheaper than NVDA’s GPUs [4], which could reduce Meta’s reliance on a single supplier [8]. For Google, this deal marks its entry into the third-party AI chip market, challenging NVDA’s dominance [5,8].

1. NVDA Revenue Risk
   : Analysts estimate Google could capture up to 10% of NVDA’s annual revenue if the deal materializes [6]. This poses a significant long-term risk to NVDA’s growth.
2. Market Share Shift
   : Google’s expansion into third-party AI chips may prompt other tech companies to explore alternatives, increasing competitive pressure on NVDA [3].
3. Meta’s Cost Optimization
   : The deal could help Meta reduce AI infrastructure costs, potentially boosting its EPS [4].
4. FOMO Trading Risk
   : Reddit users mentioned FOMO to buy GOOG shares, but investors should exercise caution as negotiations are not finalized.

• NVDA
  : Potential loss of Meta as a key customer could lead to significant revenue decline [6].
• GOOG
  : Operational challenges in scaling TPU production to meet Meta’s demand by 2027 [5].
• Trading
  : FOMO buying without due diligence may result in losses if the deal stalls.

• GOOG
  : Gains market share in the AI chip segment and diversifies revenue streams [8].
• Meta
  : Reduces AI infrastructure costs and supplier dependency [4].

• Meta is in talks with Google for a multibillion-dollar TPU deal (2026 cloud rentals/2027 in-house deployment).
• GOOG rose ~0.98% [0], NVDA fell ~4.56% [1] in response.
• Unverified claims: GOOG’s 100% 6-month rise and plans to surpass NVDA by year-end.
• Key risks: NVDA revenue loss, GOOG execution challenges, FOMO trading.