Alphabet stock gains as Meta AI chip deal boosts market prospects
The post Alphabet stock gains as Meta AI chip deal boosts market prospects appeared com. Key Takeaways Alphabet (Google’s parent company) stock rose after news that Meta (Facebook, Instagram) is considering using Google’s TPUs (tensor processing units) in its data centers. Google’s custom AI chips were previously developed for internal use only. Alphabet stock climbed today following reports that Meta Platforms, the social media company that operates Facebook and Instagram, is in talks to use Google’s tensor processing units (TPUs) in its data centers. The discussion would expand the reach of its custom AI chip beyond Google Cloud and build on recent external TPU supply deals. Google is now pitching TPUs for deployment in customers’ own data centers, potentially increasing its presence in the AI hardware market. Meta’s interest in Google’s chips signals the company’s effort to diversify its AI chip suppliers as it invests heavily in AI for content moderation and user experiences across its platforms. The potential partnership positions Alphabet as a strong alternative provider to dominant AI chip providers by enabling direct sales to major technology firms. TPUs are designed for efficient processing of machine learning workloads, including training and inference at scale. Investor response to the reported discussions has been positive, with Alphabet shares gaining on prospects for new AI hardware revenue opportunities outside the company’s traditional cloud business. Source:. Continue reading Alphabet stock gains as Meta AI chip deal boosts market prospects
