According to market sources, Google is working on artificial intelligence. Intensifying competition in the (AI) chip race to challenge Nvidia Its dominant position in this field. Meta is Google's self-developed AI chip. A potential major customer for TPUs (Tensor Processing Units) .
TPU is a chip specifically designed by Google for AI tasks to accelerate machine learning. Compared to GPUs—where Nvidia holds an absolute dominant position—TPUs have a greater advantage in energy efficiency in certain scenarios.
Google's TPU was first deployed internally in 2015 and has since undergone seven iterations. Initially, it was limited to its own cloud data centers . It was initially used, and cloud rentals were later opened, but it still uses Google Cloud as the platform.
However, reports indicate that Google is currently marketing its self-developed TPU to customers in an effort to encourage them to deploy the chip in their data centers , marking a significant shift in Google's strategy .
One of its clients is Meta, the parent company of Facebook and Instagram. Meta is reportedly internally discussing investing billions of dollars to integrate Google's TPUs into its data centers starting in 2027, and also plans to lease TPU computing power from Google Cloud as early as next year .
Currently, Meta's AI infrastructure primarily relies on NVIDIA 's graphics processing units (GPUs).
Following the news, shares of Alphabet, Google's parent company, rose 2.1% in after-hours trading on Monday, while Nvidia's shares fell 1.8%.
If the deal goes through, it will be a major affirmation of Google's hardware ambitions. Reports indicate that Google has informed various potential clients, such as high-frequency trading firms and large financial institutions, that deploying its TPUs locally can help them meet stringent security and compliance requirements for sensitive data.
A Google Cloud executive revealed that expanding the market adoption of TPUs could help the company capture 10% of Nvidia's annual revenue share.
With the demand for AI computing power surging and Nvidia continuing to dominate the key chip supply chain, Google's move to push customers to deploy its TPUs marks a more intense phase in the AI chip war.
(Article source: CLS)
