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Meta Platforms Gains on AI Processor Deal News
Meta Platforms (NASDAQ: META) experienced a 3.8% increase in share price on Tuesday following reports that the company plans to purchase tensor processing units (TPUs) from Alphabet. This potential multi-billion-dollar order could significantly impact the AI hardware market, as Meta and Alphabet are competitors in the AI and digital advertising sectors.
The Information reported that Meta’s move to acquire TPUs from Alphabet suggests a strategic shift in its AI processing technology, which could offer cost-effective performance benefits compared to reliance on Nvidia‘s graphic processing units (GPUs). Meta is currently one of Nvidia’s largest customers, making this potential diversification noteworthy for the competitive landscape of AI hardware.
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