Meta's Potential Google TPU Deal: Impact on GOOG, NVDA, and META Market Dynamics

Meta Platforms (META) is in advanced discussions to secure Google’s (GOOG) Tensor Processing Units (TPUs) for its data centers, with plans to rent in 2026 and purchase in 2027 [1]. This deal marks Google’s expansion of TPU usage beyond internal operations, while Meta seeks to diversify from Nvidia (NVDA) GPUs. Real-time market data shows GOOG at $320.12 (-0.05% day-over-day but up ~52% since mid-September), NVDA at $176.51 (-2.08% day-over-day), and META at $647.95 (+2.26% day-over-day) [0]. Google estimates the deal could capture a meaningful share of NVDA’s data-center revenue, which exceeded $50 billion in a recent quarter [1].

1. GOOG’s Market Entry
   : Google’s move to monetize TPUs externally positions it as a credible competitor to NVDA in the AI chip market.
2. Supply Chain Diversification
   : Meta’s shift reduces reliance on NVDA, addressing supply chain strain reported in the industry [1].
3. NVDA’s Vulnerability
   : The deal highlights NVDA’s exposure to competition from cloud providers’ custom chips, threatening its data-center dominance.

• GOOG
  : Opportunity to gain share in the $100B+ AI chip market, but faces execution risks in scaling TPU production for external customers [1].
• NVDA
  : Risk of losing Meta as a major customer, which could impact data-center revenue growth [1].
• META
  : Opportunity for cost savings and supply chain resilience, but integration of TPUs into existing infrastructure may pose delays [1].

Key metrics (as of November 30, 2025):

• GOOG: Price $320.12, Market Cap $3.86T, EPS $10.12, P/E 31.63 [0]
• NVDA: Price $176.51, Market Cap $4.30T, EPS $4.04, P/E43.69 [0]
• META: Price $647.95, Market Cap $1.63T, EPS $22.61, P/E28.66 [0]

Critical factors to monitor include the deal’s finalization terms, NVDA’s strategic response, and Meta’s deployment progress.