Meta's Potential Google TPU Deployment: Market Impact & Risk Analysis

On November 24, 2025 (EST),

was reported to be in discussions with Alphabet Inc. (GOOG) to deploy Google’s Tensor Processing Units (TPUs) in its data centers starting in 2027. The potential multi-billion dollar deal, first reported by The Information and confirmed by Bloomberg and Yahoo Finance, positions Google as a direct competitor to —the dominant player in AI chips [1][2][3].

Meta, one of NVIDIA’s largest customers with up to $72 billion in planned AI spending in 2025, is exploring TPUs as a cost-effective alternative to NVIDIA’s GPUs. Google has pitched TPUs as a cheaper option with higher security standards, aiming to capture 10% of NVIDIA’s revenue via its TPU business [2][3]. Neither Meta nor Google have officially confirmed the deal [1][2].

• GOOG
  : Alphabet’s shares rallied 2.40% on November 24 to close at $318.47, with after-hours trading pushing prices to $327. The stock has gained
  85.91%
  over the past six months (May-November 2025) due to AI momentum and positive reception of its Gemini 3 model [0][3].
• NVDA
  : NVIDIA’s shares fell 2.05% in after-hours trading on November 24 but closed up 1.70% on the day ($182.55). The stock faces near-term pressure from competitive threats but has gained
  36.08%
  over six months [0][3].
• META
  : Meta’s shares rose 2.39% on November 24 to $613.05, reflecting investor optimism about potential cost savings from using TPUs [0].

• Semiconductor Sector
  : The Technology sector underperformed on November 26 (-0.22876%) as investors reassessed NVIDIA’s market dominance [0].
• AI Chip Competition
  : Google’s entry into the AI chip market could lead to pricing pressure and increased innovation, challenging NVIDIA’s 80%+ market share in AI accelerators [1][3].

Metric	GOOG	NVDA	META
Period Change	+85.91%	+36.08%	-3.52%
Market Cap (Nov 26)	$3.84T	$4.38T	$1.60T
52-Week High	$328.67	$212.19	$796.25

1. GOOG’s Rally
   : The 85.91% gain in six months is driven by AI growth, but recent profit-taking (down 1.63% on Nov 26) suggests the initial hype may be fading [0].
2. NVDA’s Dominance
   : Despite the deal talks, NVIDIA maintains a larger market cap ($4.38T vs GOOG’s $3.84T) and remains the leader in AI chips [0].
3. Meta’s Cost Savings
   : TPUs could boost Meta’s EPS via cost reductions, but the deal starts in 2027—any financial impact is long-term [2][3].

1. Deal Finalization
   : No official confirmation from Meta or Google; the talks are still in early stages [1][2].
2. Deal Size
   : Exact financial terms (e.g., total spending, number of TPUs) are undisclosed [3].
3. TPU Performance
   : How Google’s TPUs compare to NVIDIA’s GPUs for Meta’s specific AI workloads (training vs inference) is unproven [1].

• Long-Term vs Short-Term
  : The deal’s impact is not immediate (2027 start), so investors should avoid overreacting to short-term price movements.
• Competitive Landscape
  : NVIDIA’s ecosystem (CUDA platform, software support) remains a significant barrier to entry for Google [3].

1. Deal Uncertainty
   : Talks may not result in a finalized agreement, leading to a reversal of recent price movements [1][2].
2. NVIDIA’s Response
   : NVIDIA could lower prices or introduce new products to retain Meta as a customer [3].
3. TPU Scalability
   : Google may struggle to produce enough TPUs to meet Meta’s demand, delaying the deal [2].

• Official Announcements
  : Confirmation/denial of the deal from Meta or Google.
• NVIDIA’s Earnings
  : Upcoming reports will reveal how the company is addressing competitive threats.
• TPU Performance Data
  : Public benchmarks comparing TPUs to GPUs for Meta’s AI workloads.

: Users should be aware that the deal is not finalized and may not materialize, which could significantly impact recent price movements of GOOG, NVDA, and META [1][2].