Nvidia plunges after news that Meta may order Google AI chips

Nvidia’s shares fell after a report indicated that Meta is in talks to spend billions on Google’s AI chips, a sign that the search giant may be moving to compete with the best-selling AI accelerator on the market. According to The Information, Meta is discussing using Google’s chips, called TPUs, in its data centers starting in 2027, citing an unnamed source. The company may also rent chips from Google’s cloud division next year. A deal would help solidify TPUs as an alternative to Nvidia’s chips, currently the standard for big tech companies and startups, from Meta to OpenAI, requiring computational capacity to develop and operate artificial intelligence platforms.