Nvidia publicly reacted to a report suggesting Meta might switch part of its AI infrastructure to Google's TPUs, causing a drop in Nvidia's stock. The move highlights a growing rivalry, as Google’s chips gain recognition as a viable alternative to Nvidia's GPUs.

Google is shifting its strategy by offering its custom TPUs for deployment in customer data centers, moving away from using them only in its own cloud. Meta is reportedly in talks to integrate these chips, planning a multibillion-dollar investment starting in 2027 while also renting TPU capacity from Google Cloud. This could significantly boost Google's presence in the AI chip market and challenge Nvidia's dominance.

CoreWeave's shares rose nearly 12% after announcing a $14.2 billion agreement to provide Meta with artificial intelligence cloud infrastructure, following a recent $6.5 billion expansion with OpenAI. The deal highlights the growing partnerships essential for AI advancements, as Meta invests significantly in expanding its AI capabilities and infrastructure by 2032.