NVIDIA Founder and CEO Jensen Hwang answers questions during a press conference during the APEC CEO Summit in Gyeongju, South Korea on October 31, 2025.
Cho Woo Hye | Getty Images News | Getty Images
Nvidia Shares fell on Tuesday after the Information reported that Meta was considering using a chip designed by Google.
Nvidia stock fell 4% in pre-market trading. Google’s parent alphabet It was trading 4.2% higher after rising more than 6% on Monday.
On Monday, The Information reported that Meta is considering using Google’s tensor processing units (TPUs) in its data centers in 2027. Meta may also borrow TPUs from Google’s cloud division next year, the publication reported.
A Google spokesperson told CNBC: “At Google Cloud, we’re seeing accelerating demand for both custom TPUs and NVIDIA GPUs. We’re committed to supporting both, as we have been for years.”
Google launched the first generation of TPUs in 2018, and they were originally designed for internal use for cloud computing businesses. Since then, Google has launched more advanced versions of the chip designed to handle artificial intelligence workloads.
Experts say the TPU is a customized chip that gives Google an advantage over rivals by allowing it to offer customers more efficient products for AI.
Meta’s use of TPUs could be a big win for Google and enable validation of the technology.
shares of broadcomThe company, which helps Google design TPUs, rose more than 2% in premarket trading Tuesday, following an 11% rise the previous day.
Nvidia continues to be the market leader in graphics processing units (GPUs), which have become the primary hardware behind building large-scale AI infrastructures. Although Nvidia’s dominance is unlikely to be reversed in the short term, Google’s TPUs will bring more competition to the AI semiconductor market.
Companies building AI infrastructure are seeking a more diverse supply of chips to reduce their dependence on Nvidia.
Meta is one of the largest spenders on AI infrastructure, with the company projecting capital spending of $70 billion to $72 billion this year.
This stock price move comes amid ongoing debate over whether there is an “AI bubble” and the soaring valuations of tech companies.
Nvidia has been at the center of controversy, with tech stocks falling after the company last week released better-than-expected revenue guidance for the current quarter.
