Nvidia (NVDA) fell in extended trading on Monday after a report that Meta Platforms (META) is in talks to spend billions on Google’s (GOOG) AI chips.
Meta is in discussions to use the Google chips — known as tensor processing units, or TPUs — in data centers in 2027, The Informationreported. Meta may also rent chips from Google’s cloud division next year, the news outlet said.
An agreement would position TPUs as a viable alternative to Nvidia’s chips and create significant competition for both Nvidia and Advanced Micro Devices, potentially undermining their sales and pricing power.
Shares of Nvidia slumped as much as 2.7% in after-hours trading, while Google parent Alphabet (GOOGL) gained 2.7%, adding to a recent surge amid optimism over the latest version of its Gemini AI model. Advanced Micro Devices (AMD) sank 1.7% in late trade.
