Alphabet's threat to Nvidia as Meta reportedly considers Google AI chips

Market Trends & Competition - Meta is considering renting Google's Tensor Processing Units (TPUs) from Google Cloud next year and could spend billions of dollars to use those chips in their own data center starting in 2027, potentially challenging Nvidia's dominance in the data center chip market [1] - The industry is experiencing a "deepseek moment" with Gemini 3, as the large language model was trained solely on Google chips, impacting Nvidia's stock [2] - Oracle's stock is down almost 5% due to concerns that competitors building AI clouds with cheaper TPUs could undercut their prices [3] - The competition is focused on offering the cheapest option for AI cloud services [3][6] Company Performance & Partnerships - Google's hardware suppliers, like Broadcom, are climbing higher, with Broadcom experiencing a 10% increase over the week [4] - Broadcom CEO Hawk 10, who sits on Meta's board, could influence Meta's decision to choose Google chips designed by Broadcom [5] - Google hardware suppliers like Celestica and Lumenum are also climbing as investors shift away from OpenAI [5] Risks & Concerns - OpenAI faces the risk of commoditization, where cheaper costs win if models like Gemini or ChatGPT become indistinguishable in performance [5][6] - Microsoft is down about 5% on the week, potentially related to the shift away from OpenAI [5]