Google Negotiates AI Chip Supply to Meta; Nvidia, AMD Stocks Drop
Google’s parent company, Alphabet Inc. (GOOGL), is reportedly negotiating the supply of its AI chips with Meta Platforms (META) and other tech firms. This move marks a significant expansion in Google’s efforts to compete directly with Nvidia (NVDA) in the AI chip market.
Negotiations for AI Chip Supply
The discussions revolve around Google’s Tensor AI chips, which could be made available for external use rather than solely within Google’s own data centers. Traditionally, Google has harnessed its Tensor Processing Units (TPUs) for its infrastructure needs.
Partnering with Broadcom (AVGO), Google seeks to broaden its influence in the AI sector. These negotiations are seen as a strategic step to intensify competition against established players such as Nvidia and Advanced Micro Devices (AMD).
Market Reactions
- Following the news, shares of Google and Broadcom experienced a rise.
- In contrast, Nvidia and AMD stocks saw a decline as investors reacted to the potential for increased competition.
This development highlights the growing importance of AI technology in the tech industry and the shifting dynamics among major companies. As Google expands its chip supply to other firms, it may redefine market positions and alter future strategies for existing competitors.
