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

On November 24, 2025 (EST), a Reddit post [5] reported that Alphabet Inc. (GOOG) shares rose in after-hours trading following news that Meta Platforms (META) is considering deploying Google’s Tensor Processing Units (TPUs) in its data centers. This development was verified by tier-1 sources including

[1] and [2], which confirmed Meta is in discussions to spend billions on Google’s TPUs starting in 2027 and rent TPU capacity from Google Cloud as early as next year. The move would reduce Meta’s reliance on Nvidia (NVDA) chips, challenging Nvidia’s dominance in the AI chip market.

• GOOG
  : Shares rose ~1.62% in after-hours trading to $323.64, reflecting investor optimism about a new revenue stream from AI chip sales [0].
• NVDA
  : Shares fell ~2.59% to $177.82, as the news signals potential loss of a key customer [0].
• META
  : Shares gained ~3.78% to $636.22, driven by expectations of cost savings from reduced Nvidia GPU purchases [0].

• Google’s TPU business could emerge as a significant competitor to Nvidia, with Meta’s potential order representing a major endorsement of Google’s chip technology [1].
• Nvidia may face pressure to adjust pricing or accelerate product innovation to retain market share [3].

• The shift towards alternative AI chips (like Google’s TPUs) may signal a broader trend of diversification among tech companies, reducing Nvidia’s market dominance [3].
• Google could expand its AI chip ecosystem to other customers, creating a new multi-billion dollar revenue line [2].

• Positive
  : GOOG (new revenue stream), META (cost efficiency).
• Negative
  : NVDA (customer retention risk).

Metric	GOOG	NVDA	META
After-Hours Price Change	+1.62% ($323.64)	-2.59% ($177.82)	+3.78% ($636.22)
6-Month Price Change (May-Nov 2025)	+85.91% ($171.30 → $318.47)	N/A	N/A
Market Cap	$3.91T	$4.33T	$1.60T
Average Daily Volume (6 months)	24.30M	N/A	N/A

Source: [0] Ginlix Analytical Database

• Alphabet Inc. (GOOG)
  : Beneficiary of potential TPU sales to Meta [1][2].
• Nvidia Corporation (NVDA)
  : At risk of losing Meta as a key customer [3].
• Meta Platforms (META)
  : Potential cost savings from TPU adoption [2].

• AI chip manufacturing, cloud computing (Google Cloud), social media, data center infrastructure [3][4].

• Google’s TPU production facilities, Nvidia’s GPU supply chain, data center hardware providers [2][3].

1. Exact financial terms and size of Meta’s potential TPU order [1].
2. Timeline for Meta’s TPU deployment (rent vs purchase) [2].
3. Impact of Meta’s shift on Nvidia’s long-term revenue projections [3].

• GOOG
  : Diversification beyond search/ad revenue to AI chips could reduce business risk [1].
• META
  : Cost savings from TPUs may boost EPS and free cash flow [2].
• NVDA
  : Need to innovate or adjust pricing to retain market share [3].

• Progress of Meta-Google negotiations [1][2].
• Nvidia’s response (product launches, pricing) [3].
• Adoption of Google’s TPUs by other tech companies [4].

• NVDA
  : Potential loss of Meta could harm revenue growth; monitor customer retention and product innovation [3].
• GOOG
  : Scaling TPU production to meet Meta’s demand may face execution delays [2].
• META
  : Integrating Google’s TPUs into existing data centers could lead to unexpected costs [1].
• General
  : The AI chip market is highly competitive; shifts in customer preferences may cause volatility [3][4].

: This analysis is for informational purposes only and does not constitute investment advice. Always conduct your own research before making investment decisions.