Alphabet, Meta Reportedly in Talks on Google AI Chips

Competitive Landscape - Alphabet's TPUs are positioned as a competitive threat to NVIDIA in the AI chip market [4] - The AI chip market is heating up with competition between Alphabet and NVIDIA [8] - Gemini 3 is posing a competitive challenge to OpenAI, impacting SoftBank's stock as a proxy for OpenAI [9] Technology and Performance - Google's TPUs are developed in-house and adapted based on large language model (LLM) performance, creating a feedback loop for improvement [2] - TPUs are effective for both training models and inference, with a focus on inference for Matter's potential deal [5][6] - TPUs need to prove their energy efficiency and cost-effectiveness [6] Partnerships and Demand - Anthropic is committed to a deal with Google for a large supply of TPUs, close to 1 million units [3] - Alphabet is a major spender on AI chips through partnerships with Anthropic [4] - There is strong demand for NVIDIA's Rubin chips, expected to be released in 2026 [7]