Saad Ullah
⬤ Google is gearing up for a major expansion in AI hardware as reports suggest Meta is deep in talks to buy billions of dollars worth of Google TPUs. Google Cloud leaders think this spike in TPU demand could seriously lift GOOGL's AI revenue. The timing matters because Google is shifting away from only offering TPUs through its cloud platform—now they're selling them directly so customers can run them in their own data centers.
⬤ Meta is apparently looking at a multibillion-dollar TPU purchase, which shows just how fast big tech companies are mixing up their AI compute options. Google used to keep its custom TPUs locked down in its own facilities, letting customers rent access through Google Cloud. That's changing now as Google starts selling TPUs more widely to keep up with exploding AI compute demand. Some Google Cloud insiders believe TPU hardware sales could grab up to 10% of Nvidia's annual revenue—we're talking several billion dollars here.
⬤ This shift could sharply increase Google's revenue as it pushes deeper into the AI accelerator market. The move puts Google in direct competition with Nvidia as both companies battle for dominance in a sector where infrastructure spending is massive. Meta's interest shows that big buyers are getting more comfortable with non-GPU options, especially when supply is tight or prices make diversification smart.
⬤ If this Meta-Google deal goes through, it would be a big moment for AI hardware. It shows how cloud providers and chip makers are changing their playbooks as companies scramble to lock down reliable compute power for training and running large-scale models. A deal like this wouldn't just strengthen Google's market position—it would speed up the industry's move toward multi-vendor AI infrastructure, reshaping competition across both cloud and chip sectors.
Saad Ullah
