(Seoul=Yonhap Infomax) Si Yoon Yoon – Google (NASDAQ: GOOGL) is intensifying its competition with Nvidia (NASDAQ: NVDA) in the artificial intelligence (AI) semiconductor market, with Meta Platforms Inc. (NASDAQ: META) emerging as a potential multi-billion dollar customer.


According to The Information on the 24th (local time), Google has shifted its strategy by proposing to install its Tensor Processing Units (TPUs) directly in client data centers, a departure from its previous approach.


For years, Google limited the use of its TPUs to its own Google Cloud data centers, offering them to enterprises for large-scale AI workloads only via rental.


Now, by allowing TPUs to be installed on customer premises, Google is taking a more aggressive stance in the AI chip race.


The report states that Meta, the parent company of Facebook and Instagram, is in discussions to invest several billion dollars to deploy TPUs in its own data centers starting in 2027. Meta is also considering renting TPU capacity from Google Cloud as early as next year.


Currently, Meta relies heavily on Nvidia’s graphics processing units (GPUs) for its AI infrastructure.


Following the report, shares of Alphabet, Google’s parent company, rose 2.1% in after-hours trading, while Nvidia shares fell 1.8%.


Industry sources estimate that expanded adoption of Google Cloud TPUs could account for up to 10% of Nvidia’s annual revenue, potentially amounting to several billion dollars.


syyoon@yna.co.kr


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