Nvidia shares drop over 6% on threat of Google selling AI chips to Meta
Crypto Briefing
Nvidia's stock fell over 6% due to a report that Google might sell its custom AI chips to Meta.Summary
Nvidia's shares dropped more than 6%, erasing billions from its market cap, following a report that Google is considering supplying Meta with its custom Tensor Processing Units (TPUs) by 2027. This potential move would signify a major change in Google's chip strategy, shifting from offering TPU access through its cloud platform to directly selling the hardware to external customers. Such a development would put Google in direct competition with Nvidia in the crucial AI data center infrastructure market, where Nvidia currently dominates. The news fueled investor concerns about long-term demand risks and valuation pressure, especially as other competitors like AMD are also emerging.
(Source：Crypto Briefing)