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Meta Platforms is in talks to purchase Alphabet’s tensor processing units (TPUs), marking a potential shift in the competitive landscape between AI hardware providers. This would be the first time TPUs are available for outside purchase, typically used internally or rented through Google Cloud.
Nvidia continues to dominate the data center computing market, projecting a significant 48% revenue growth to $316 billion for fiscal year 2027, compared to Alphabet’s 14% growth to $454 billion. Nvidia anticipates global data center capital expenditures to reach $3 trillion to $4 trillion annually by 2030, creating ample opportunity for both companies.
Despite speculation over Alphabet’s TPUs, Nvidia remains the preferred choice for many companies due to its established GPU market. Nvidia’s CEO noted a current “sold out” status of cloud GPUs, suggesting Meta may be seeking alternatives if demand for Nvidia’s products exceeds supply.
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