Meta Plans Billion-Dollar Move into Google Chips to Take on Nvidia

Published: 26 Nov 2025

Author: Precedence Research

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A leading tech giant, Meta, is in talks with Google to spend billions of dollars on Alphabet-owned chips to be used in its data centers, starting in 2027. It is a bold move by a company that would present Google as a major rival to semiconductor firm NVIDIA, a big shark in the global semiconductor chip market, and without any competitors yet, showcasing its dominance and how this move will shake their establishment.

The talks include Meta renting chips from Google Cloud within the next year and are part of Google's broader push to enable consumers to adopt its tensor processing units (TPUs) for AI workloads in their own data centers, as per authentic data sources. This move would mark a departure from Googles current strategy of using TPUs only in its own data centers and sharply expand its chip demand in the market, positioning the company as a direct competitor to NVIDIA and other companies offering AI services globally.

According to suggestions from some Google Cloud executives, this strategy could help it gain as much as 10% of NVIDIA's annual revenue, which is no more than a slice worth billions of dollars, according to calculations.

However, shares of Alphabet rose more than 40% in premarket trading on Tuesday, putting it on track to hit an unprecedented $4 trillion valuation if the gains hold. On the other hand, leading tech giant Broadcom, which assists Google in building its AI chips, has gained 2%, while NVIDIA has fallen back to 3.2%.

One of the significant moves by NVIDIA customers, with up to $72 billion in spending planned this year, would mark a major coup for Google amid the growing surge in the generative AI sector. Also, custom chips like TPUs have seen growing demand over the last few years as businesses seek better options than NVIDIA's chips at a reasonable price. Google has already built momentum in recent months through its move.