<div id="readability-page-1"><div><div>                                                                                                                                                <p>Nvidia’s (NVDA) stock is down 4% after media reports surfaced that Meta Platforms (META) plans to use microchips designed by Google parent company Alphabet (GOOGL).</p><p>News site The Information was first to report that Meta is considering using Alphabet’s tensor processing unit (TPU) microchips in its artificial intelligence (A.I.) data centers starting in 2027. </p><p>Meta may also rent TPUs from Alphabet’s cloud computing unit as earlier as next year as it races to stay ahead in the global A.I. industry. </p><p>Alphabet launched its first-generation TPU in 2018 and it was initially designed for its own internal use with its cloud computing business. </p><p>However, Alphabet has now launched more advanced versions of its signature microchip that are designed to handle A.I. workloads and is selling them to other companies like Meta. </p><p>TPUs are a customizable chip and experts say this gives Alphabet an advantage over rivals as it can offer customers a highly efficient product for A.I applications and models.</p><p>If Meta uses the TPUs, it would be big win for Alphabet and help validate the search engine giant’s microchip technology.</p><p>For Nvidia, Alphabet’s TPUs represent a competitive threat. </p><p>Nvidia remains the market leader with its graphics processing unit (GPU) microchips that have become the main piece of hardware underpinning A.I. infrastructure worldwide. </p><p>However, Nvidia is facing growing threats to its A.I. microchip dominance from Alphabet, as well as Advanced Micro Devices (AMD), Arm Holdings (ARM), and others.</p><p>Companies that are rapidly building A.I. infrastructure, such as Microsoft (MSFT) and OpenAI, are searching for a more diversified supply of microchips to reduce their reliance on Nvidia.</p><p>The competition in the chip space and decline in Nvidia’s share price come as a debate rages about whether there is an A.I. bubble amid high tech company valuations.</p><p>Prior to today (Nov. 25), NVDA stock had risen 32% this year to trade at $182.55 U.S. per share.</p></div></div></div>

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<p>Nvidia's stock fell 4% after reports that Meta plans to use Alphabet's TPU microchips in its A.I. data centers, posing a competitive threat to Nvidia's GPU dominance. Meta's potential use of TPUs marks a significant win for Alphabet, challenging Nvidia's market leadership. The competition in the chip industry intensifies as companies seek diversified microchip supplies, impacting Nvidia's share price.</p>

- Nvidia's stock fell 4% following reports that Meta Platforms plans to use microchips from Alphabet, specifically tensor processing units (TPUs), in its A.I. data centers starting in 2027.  
- This shift could validate Alphabet's microchip technology and poses a competitive threat to Nvidia, which currently leads the A.I. microchip market with its GPUs.  
- As companies like Microsoft and OpenAI seek diversified chip supplies, Nvidia faces increasing competition from Alphabet, AMD, and others amid discussions of a potential A.I. bubble.

Nvidia’s Stock Falls On Reports Meta Will Use Alphabet A.I. Chips