Last night it was revealed that Meta and Google are about to sign a multi-million dollar AI chip purchase agreementwhich can put Nvidia in serious trouble. As a result, shares of Jensen Huang’s company have fallen 3%.
The CEO of the company has had to step up to stop the fall in the stock market. In a post on X, Nvidia has begun by praising its rival: “We are delighted with Google’s success: they have made great advances in AI and we remain Google suppliers.”
But it quickly marks territory: “Nvidia is a generation ahead of the industry: it is the only platform that runs all AI models and does so in all places where computing operations are carried out.”
And he concludes: «Nvidia offers greater performance, versatility and fungibility than ASICs, which are designed for specific functions or artificial intelligence frameworks.»
Google’s change in strategy that scares Nvidia
According to rumors, Google and Nvidia are about to announce a “billion-dollar” deal through which Meta will rent in 2026, and buy in 2027, thousands of Google Cloud Tensor Processing Units (TPUs)to train and use with your AI.
TPUs, or ASICs, as the CEO of Nvidia calls them, are AI accelerators with custom design that are optimized for training and inference of large AI models.
Jensen Huang tells the truth: his AI chips are general-purpose, pure power, all-purpose GPUs that work with all AI. But that doesn’t invalidate Google’s chips.
It is true that TPUs are customized for what Google needs, and only offer specific functions that require them to be configured differently, depending on whether they are used to train AI, or for inference (use of AI).
But it is worth remembering that Gemini 3 Prowhich is the most powerful language model today, has been trained with Google TPUs, without Nvidia chips. And that’s just what Meta wants to do, because TPUs are cheaper than the green company’s GPUs.
Both Google and Nvidia have stressed today that Sundar Pichai’s company continues to use Nvidia chips, that is not going to change. But the trees should not hide the forest: The important thing here is Google’s change in strategy.
Until now you only rented your TPUs through Google Cloud. If this alliance with Meta is confirmed, he will also sell them. And it does so to one of its most direct competitors. According to the leak, Their goal is to take 10% of the data center market from Nvidia.
The web of AI is getting more and more tangled. Everyone signs agreements with everyone, it doesn’t matter if they are direct competitors, suppliers or customers. If one falls, the rest will follow like a house of cards.