Meta about to buy Google's AI chips for billions? Nvidia shares plummet
A report about Meta's plans to possibly equip its own data centers with Google's AI chips has caused Nvidia's shares to drop. The company reacted.
(Image: gguy/Shutterstock.com)
After a media report about Meta's multi-billion dollar investment plans in Google's AI chips caused Nvidia's stock to slide, the semiconductor manufacturer reacted unusually. In a post on the microblogging service X, Nvidia assured that it rejoices in Google's success. The competitor has made great progress. But at Nvidia, they are a generation ahead of the industry and have "the only platform that can run every AI model." They offer more performance, versatility, and interchangeability. Throughout Tuesday's trading day, Nvidia's stock price steadily declined, but it could not recover its morning losses. The stock closed down almost three percent.
Google as a direct Nvidia competitor?
The trigger for the downturn was apparently a report by the US magazine The Information about negotiations between Meta and Google. The Facebook group could therefore spend billions on Google's TPU chips and use them in its data centers. So far, they are mainly used in Google's own facilities, where they can also be rented by customers. With the sale to other operators of large data centers, Google would enter into direct competition with Nvidia. According to a source from The Information, it is about up to 10 percent of the market share of the market leader. Google's TPUs are reportedly cheaper than Nvidia's technology. However, the publicized negotiations are not yet concluded, The Information qualified.
Videos by heise
Nvidia's immediate reaction to the report and the stock market's reaction on Tuesday indicated that the competition is being taken seriously there. In the past, Nvidia has reacted to similar negotiations with multi-billion dollar investments in interested parties in Google hardware. In return, they committed to buying Nvidia products, The Information recalls. This could allow the semiconductor manufacturer to outdo competitor Google in this case as well -- Nvidia definitely has the money for it. Nevertheless, the stock market reaction underscores the continued great uncertainty and the concern about a .
(mho)
