Google Plans to Directly Sell TPUs to Meta, NVIDIA's Market May Face Further Erosion

BlockBeats News, November 25th, according to foreign media reports, Google's parent company Alphabet (GOOG.O) is in talks with Meta (META.O) and other companies, planning to open up the usage rights of its self-developed Tensor AI chip to them, further expanding the competitive landscape with NVIDIA (NVDA.O). In response to this news, Google and its AI chip partner Broadcom rose after hours, while NVIDIA and AMD's stock prices fell accordingly. Google has traditionally only deployed its self-developed TPUs in its own data centers and rented out computing power to customers.

However, the U.S. tech media The Information reported on Monday night local time that Google is now planning to directly sell TPU chips to customers for deployment in their own data centers. Meta is considering purchasing Google's TPU chips worth billions of dollars starting in 2027 for use in its data centers, while also planning to start renting TPU computing power from Google Cloud as early as 2026. Currently, Meta's AI business mainly relies on NVIDIA GPUs. For Google and Broadcom, who jointly designed the Tensor chip, this signifies a potentially huge emerging market. It may also pose significant competitive pressure on NVIDIA and AMD, potentially impacting the latter's sales and pricing power. (Jinse)