Meta is considering adopting Google AI chips, NVIDIA's stock price fell sharply by 7% in response: We are a generation ahead.

As the market presence of Google's TPU rapidly expands, the latest news indicates that Meta may become its next multi-hundred-million-dollar client, delivering a shockwave to the AI chip Supply Chain. In the context of Nvidia's long-term monopoly on the AI chip market, the competition among the three chip manufacturers not only affects the computing power layout of tech giants but also impacts global stock markets, the supply chain, and the AI model ecosystem.

Meta has spent billions of dollars acquiring Google TPU.

The Information reported that Meta is in talks to deploy Google's Tensor Processing Unit (TPU) in its own data center in 2027, and may rent related Computing Power through Google Cloud starting in 2026.

This collaboration is seen as a significant breakthrough for Google in the AI chip market, once again attracting heavyweight customers' attention after providing Anthropic with millions of TPUs.

At the same time, it reflects that Meta may be unwilling to overly rely on the chip market leader NVIDIA, as the high prices and long delivery times force companies to seek alternatives. Google's TPU, with its AI-specialized architecture, allows for deeper adjustments tailored for inference and training of large language models, making it a competitive option.

( SoftBank stock price has dropped 10% for two consecutive days, and OpenAI's position is challenged by Google ).

Google TPU Competes: A New Challenger in the AI Chip Market

Google's self-developed TPU is an ASIC designed for AI computing, an Application-Specific Integrated Circuit ( chip, and is highly integrated with its own DeepMind models ) such as Gemini(. Outsiders believe that TPU has advantages in efficiency, customization capabilities, and cost, which are key reasons why companies consider switching from NVIDIA.

)The technical differences between NVIDIA GPUs and self-developed AI chips from Google and Amazon AWS, as well as the future market trends(

The market reacted quickly, with Alphabet's market value approaching 4 trillion dollars. Taiwan's MediaTek ) stock code: 2454( also benefited from a surge of 8%, indicating that the spillover effect of Google TPU is starting to take shape.

NVIDIA strikes back: We are still a generation ahead, AI models need us.

After the rumors about Meta were exposed, Nvidia's stock price initially plunged by 7% before narrowing to 2.6%. The company responded on X: “We are glad to see Google's success; they have made great progress in the AI field, and we continue to supply them.”

NVIDIA meaningfully stated: “We are still a generation ahead of the entire industry, being the only platform capable of running all AI models in all scenarios, providing superior performance, versatility, and replaceability compared to ASICs.”

A few weeks ago, Google released the widely acclaimed AI model Gemini 3, which was trained on the company's TPU rather than NVIDIA's GPU, highlighting the intensifying chip competition.

AI chip landscape is being reshaped: a single dominant player or competition among multiple suppliers?

The three-party dynamics of Google, Meta, and Nvidia indicate that the AI chip battlefield is entering a new stage.

Due to high prices, supply constraints, and risk diversification, enterprises are reluctant to rely solely on NVIDIA. As a result, most cloud and AI-related companies have begun to adopt a “multi-supplier strategy,” simultaneously procuring GPUs, TPUs, and other alternatives.

This competition will determine the core architecture of the next generation of AI infrastructure, and the choices and statements made by various parties may become key variables driving a reshuffling of the entire market.

This article discusses Meta's consideration of adopting Google AI chips, with Nvidia's stock price plummeting 7% in response: We are a generation ahead. Originally appeared in Chain News ABMedia.