Meta Explores Google TPUs While Alphabet Surpasses Microsoft

Meta Platforms is reportedly in discussions to use Google's tensor processing units (TPUs) for its artificial intelligence projects, a move that could significantly impact the AI chip market. These discussions suggest Meta might deploy Google's TPUs in its data centers by 2027 and could even rent them from Google Cloud as early as next year. This potential multi-billion dollar deal aims to lessen Meta's reliance on Nvidia's GPUs, causing Nvidia's shares to fall by approximately 4% following the news. Despite this, Nvidia maintains a strong position with a $4.2 trillion market cap, and CEO Jensen Huang anticipates $500 billion in revenue from its Blackwell and Rubin AI platforms through 2026. Alphabet, Google's parent company, is experiencing a substantial rally, with its stock surging over 50% this year, bringing it closer to a historic $4 trillion market valuation. This growth is largely fueled by its robust focus on AI, including the successful launch of its Gemini 3 AI model on November 18. Gemini 3 is now integrated into Google Search, the Gemini app, and its enterprise cloud services. Alphabet has surpassed Microsoft in market capitalization and is now closing in on Apple, reflecting the widespread optimism surrounding its AI ventures. Larry Page's net worth has increased to $261 billion as Alphabet's shares rallied 67% since August 1. Meanwhile, Amazon has committed to spending up to $50 billion on AI infrastructure to support its US government clients, signaling a major investment in its AI and supercomputing capabilities. OpenAI CEO Sam Altman also revealed that the company has developed the first prototypes for a new device. In other AI developments, Alibaba's AI business shows strong growth despite a 53% drop in net profit to $2.96 billion in its fiscal second quarter, as the company shifts its focus to the consumer AI market. Baidu's Apollo Go robotaxi network has completed over 9 million rides, and its Ernie Bot AI model demonstrates strong performance. UBS predicts global annual AI spending will reach $375 billion by the end of this year and exceed $3 trillion by 2030, highlighting the broad market enthusiasm for AI.

Key Takeaways

• Meta Platforms is discussing using Google's tensor processing units (TPUs) for its AI projects by 2027, potentially renting them from Google Cloud next year.
• Nvidia's stock dropped about 4% following reports of Meta's potential shift to Google AI chips, though Nvidia still holds a $4.2 trillion market cap.
• Alphabet's stock surged over 50% this year, reaching a record high and nearing a $4 trillion market valuation, driven by its AI advancements.
• Alphabet has surpassed Microsoft in market capitalization and is closing in on Apple, reflecting strong investor confidence in its AI initiatives.
• Google launched its Gemini 3 AI model on November 18, integrating it into Google Search, the Gemini app, and enterprise cloud services.
• Amazon plans to invest up to $50 billion in AI infrastructure to support its US government clients.
• OpenAI CEO Sam Altman revealed the development of first prototypes for a new device.
• Alibaba's AI business shows strong growth despite a 53% drop in net profit to $2.96 billion in its fiscal second quarter.
• Baidu's Apollo Go robotaxi network has completed over 9 million rides, and its Ernie Bot AI model demonstrates strong performance.
• UBS predicts global annual AI spending will reach $375 billion this year and exceed $3 trillion by 2030.

Meta may use Google AI chips, boosting Alphabet

Meta Platforms is reportedly discussing using Google's AI chips, called tensor processing units or TPUs. These chips could be used in Meta's data centers by 2027, with potential rentals from Google Cloud next year. This news suggests Google is making progress in competing with Nvidia's popular AI accelerators. Following this report, Nvidia's stock dropped.

Nvidia stock drops as Meta considers Google AI chips

Nvidia's shares fell by about 4% after reports that Meta Platforms is in talks to buy billions of dollars worth of AI chips from Google. Meta plans to use Google's tensor processing units, or TPUs, in its data centers by 2027 and may rent them from Google Cloud next year. This potential deal could impact Nvidia's revenue, as Meta currently relies on Nvidia's GPUs. Google is promoting its TPUs as a more affordable option, and it recently released its Gemini 3 AI model. Despite this, Nvidia remains a leader in the AI chip market with a $4.2 trillion market cap.

Meta explores Google AI chips to challenge Nvidia

Meta Platforms is in discussions to use Google's tensor processing units, or TPUs, for its artificial intelligence projects. This move aims to lessen Meta's reliance on Nvidia's chips. The potential deal could be worth billions of dollars, but discussions are still ongoing. Meta might use these TPUs for either training new AI models or for inference, which is the process of generating responses from trained models.

Alphabet nears 4 trillion dollar value with AI growth

Alphabet is on track to achieve a historic $4 trillion market valuation, fueled by a strong year-long rally. The company's stock has surged over 50% this year, largely due to its increased focus on artificial intelligence tools. Alphabet's AI efforts, including its Gemini models, span across its search engine, cloud services, and autonomous driving technology. Reaching this milestone would make Alphabet the fourth company to do so, highlighting AI's growing importance in the tech sector.

Alphabet set to reach 4 trillion dollar market value

Alphabet is expected to reach a significant $4 trillion market valuation this Tuesday. This achievement follows a year-long stock rally, largely driven by the Google parent company's strong focus on artificial intelligence tools. Alphabet will join an exclusive group of major tech companies that have reached this high market value. This milestone shows how much AI is influencing Wall Street and the tech industry.

New ETF offers double bet on Baidu AI and robotaxis

Krane Funds Advisors launched a new investment fund called the KraneShares 2X Long BIDU Daily ETF, or KBDU, on November 21. This ETF is designed to give investors twice the daily return of Baidu Inc. shares. Baidu is a leading Chinese tech company known for its search engine, cloud services, and AI software. Its Apollo Go robotaxi network has completed over 9 million rides and its Ernie Bot AI model shows strong performance. The KBDU ETF allows traders to invest in Baidu's growth in AI, autonomous driving, and cloud infrastructure.

Alphabet AI success boosts Nasdaq, Amazon invests big

The Nasdaq Composite index jumped by 2.69% due to investor excitement about Alphabet and its new AI model, Gemini 3. Meanwhile, Amazon announced plans to spend up to $50 billion on AI infrastructure for its US government clients. OpenAI CEO Sam Altman also revealed that the company has developed the first prototypes for its new device. Some analysts believe Alphabet's strong advances in AI, including its Gemini model and custom TPU chips, could lead to market outperformance and a new wave of AI enthusiasm.

Alphabet stock hits record high driven by AI offerings

Alphabet's stock reached a new record high on Monday, November 24, bringing the company closer to a $4 trillion valuation. The stock gained 5%, pushing its market capitalization to $3.82 trillion. This growth is largely due to its successful cloud business, an investment from Warren Buffett's Berkshire Hathaway, and positive reviews for its Gemini 3 artificial intelligence model. Google launched Gemini 3 on November 18, integrating it directly into Google Search, the Gemini app, and its enterprise cloud services.

Alibaba profit drops but AI business shows strong growth

Alibaba's net profit dropped by 53% to 20.99 billion yuan, or $2.96 billion, in its fiscal second quarter. This decline was mainly due to tough competition in the food delivery sector. Despite the profit slump, the company's revenue growth remained steady, and its artificial intelligence business showed strong momentum. Alibaba is now focusing its efforts on the consumer AI market.

Google AI success drives rebound, Amazon invests billions

Google's AI business continues its strong performance, contributing to a significant rebound in Alphabet's shares. Amazon has committed up to $50 billion to expand its AI and supercomputing capabilities for the U.S. government. UBS predicts that global annual AI spending will reach $375 billion by the end of this year and exceed $3 trillion by 2030. Google cofounder Larry Page's net worth increased to $261 billion as Alphabet's shares rallied 67% since August 1 due to optimism about its AI ventures.

Beyond Google AI stocks like Broadcom and Zoom are rising

While Google's AI advancements are gaining attention, other tech companies are also seeing investor excitement. Ramzan Karmali highlighted companies like Broadcom (AVGO), Symbotic (SYM), and Zoom (ZM) as examples of rising AI stocks. Additionally, China's robotaxi company Pony AI (PONY) is also drawing investor interest. This shows that the enthusiasm for artificial intelligence in the market is widespread, extending beyond just major players like Google.

Nvidia stock falls as Google AI gains momentum

Nvidia's stock has dropped, while Alphabet's stock is rising sharply due to excitement over its artificial intelligence advancements. Alphabet has now surpassed Microsoft to become the third-largest company by market capitalization and is closing in on Apple. Nvidia's stock has fallen from its recent high of a $5 trillion valuation. A Bernstein analyst suggests that investors should focus on whether the overall AI market continues to grow, rather than just debating which company will dominate the AI chip sector. Nvidia CEO Jensen Huang previously stated the company expects $500 billion in revenue from its Blackwell and Rubin AI platforms through 2026.

Sources

• Alphabet Gains on Report Meta to Use Its AI Chips; Nvidia Falls
• Nvidia shares sink 4% after report of Meta in talks to spend billions...
• Meta Is in Talks to Use Google’s Chips in Challenge to Nvidia
• Alphabet on pace to hit $4 trillion market value as AI gains momentum
• Alphabet on pace to hit $4 trillion market value as AI gains momentum
• Baidu Turbocharged: 2X ETF Lets Traders Ride China’s AI And Robotaxis - Baidu (NASDAQ:BIDU), KraneShares 2x Long BIDU Daily ETF (NASDAQ:KBDU)
• CNBC Daily Open: A risky alpha bet in markets to revive AI trade
• Alphabet’s AI-Related Offerings Help Drive Stock to Record High
• Alibaba’s Profit Slumps but AI Business Shines
• Forbes Daily: Google’s AI Winning Streak Continues Amid Stunning Rebound
• The AI stocks still rising (it's not just GOOGL)
• Nvidia’s stock drops on Google fears. Are investors missing the point?