On November 25, international media outlets reported that Alphabet, Google's parent company, is engaging in discussions with firms like Meta to grant them access to its in-house-developed Tensor AI chips. This move is aimed at intensifying competition with Nvidia. The news had an immediate impact on the stock market: shares of Google and its AI chip collaborator Broadcom surged in after-hours trading, whereas Nvidia's and AMD's stocks experienced a decline.

Historically, Google has limited the use of its self-developed TPU chips to its own data centers, offering computing power to customers on a leasing basis. However, according to a report by the U.S. tech news platform The Information on Monday evening (local time), Google is now poised to sell TPU chips directly to customers, enabling them to deploy these chips in their own data centers. Meta is contemplating a multi-billion-dollar investment in Google's TPU chips for its data centers, with plans to commence as early as 2027. Additionally, Meta intends to start renting TPU computing power from Google Cloud in 2026. At present, Meta's AI operations predominantly rely on Nvidia's GPUs.

For Google and Broadcom, which co-designed the Tensor chips, this development opens up a potentially lucrative new market. Conversely, it exerts substantial competitive pressure on Nvidia and AMD, potentially affecting their sales volumes and pricing strategies.