{"id":312544,"date":"2025-11-25T10:18:07","date_gmt":"2025-11-25T10:18:07","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/312544\/"},"modified":"2025-11-25T10:18:07","modified_gmt":"2025-11-25T10:18:07","slug":"google-jumps-nvidia-and-amd-fall-on-report-that-the-search-giant-is-in-talks-to-sell-billions-of-dollars-of-its-custom-ai-chips-to-meta","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/312544\/","title":{"rendered":"Google jumps, Nvidia and AMD fall on report that the search giant is in talks to sell \u201cbillions of dollars\u201d of its custom AI chips to Meta"},"content":{"rendered":"

Google<\/a> jumped in after-hours trading while Nvidia<\/a> and Advanced Micro Devices<\/a> dropped on the heels of a report from The Information that has the search giant muscling in on the chip designers\u2019 turf.<\/p>\n

Per the report<\/a>, Meta<\/a> is in discussions with Google to spend \u201cbillions of dollars\u201d to use its AI chips in the social media company\u2019s data centers starting in 2027, and to begin renting access to Google chips from its cloud business next year.<\/p>\n

Historically, Google has rented access to these chips through its cloud business rather than supply them directly to third parties. The report suggests that insiders believe a more direct foray could allow the company to grab a market share in chips amounting to about 10% of Nvidia\u2019s annual revenue. <\/p>\n

Google\u2019s AI chips \u2014 TPUs, or tensor processing units \u2014 are having a moment<\/a>. These semiconductors were used to train its latest genAI model, Gemini 3, which has received rave reviews<\/a>, and are cheaper to use than Nvidia\u2019s offerings. That\u2019s sent the stock to record highs<\/a>, surpassing Microsoft in market value along the way. <\/p>\n

According to The Information, Meta is even mulling using TPUs for training, considered a much more demanding task, rather than just inference alone.<\/p>\n

Shares of Nvidia and AMD, which sell GPUs for use in data centers, fell about 2% in postmarket trading, while Google gained around 2%.<\/p>\n

During Nvidia\u2019s conference call last week, CEO Jensen Huang was asked about the competitive threat posed by custom chips<\/a>. He responded by talking up the difficulty of inference (\u201cHow could thinking be easy?\u201d). That\u2019s a not-too-subtle nod to the idea that his company\u2019s GPUs will be the more effective solution compared to more cost-effective options. He also touted the company\u2019s CUDA software as a selling point, because it\u2019s more commonly used and therefore makes it easier for its buyers to go on and sell AI computing capacity. <\/p>\n

Google has aimed to make its JAX software easier for developers over time by making its TPUs operable via open-source software tied to PyTorch (invented by Meta), overhauling how errors are reported, and introducing an extension that makes it easier to write custom code, among others.<\/p>\n","protected":false},"excerpt":{"rendered":"Google jumped in after-hours trading while Nvidia and Advanced Micro Devices dropped on the heels of a report…\n","protected":false},"author":2,"featured_media":312545,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[45],"tags":[182,181,507,74],"class_list":["post-312544","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-artificial-intelligence","tag-artificialintelligence","tag-technology"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/312544","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=312544"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/312544\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/312545"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=312544"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=312544"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=312544"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}