Meta Leases Google TPUs as Nvidia Stock Drops 5.46%
Meta agreed to lease Google’s TPUs alongside Nvidia GPUs and AMD chips in a multi-billion-dollar deal, indicating a shift to a multi-supplier AI infrastructure that could dampen Nvidia’s data center GPU demand. Nvidia shares fell 5.46% after Q4 revenue growth slowed as global funds inflows dropped to $19.75B, the smallest since Jan 21.
1. Meta’s Multi-Supplier AI Infrastructure
Meta has locked in multi-billion-dollar agreements with Nvidia, AMD and now Google to lease TPUs for AI model training and inference. This layered approach gives Meta flexibility but introduces competition to Nvidia’s data center GPU sales.
2. Nvidia Q4 Results and Revenue Growth
Nvidia reported slower Q4 revenue growth compared to prior quarters, although results still beat consensus forecasts. The deceleration signals potential cooling demand for GPUs as large AI customers diversify chip suppliers.
3. Stock Reaction and Fund Flow Impact
Nvidia shares plunged 5.46% following the earnings release, reflecting investor concern over growth prospects. Simultaneously, global equity fund inflows fell to $19.75B, the lowest weekly total since January 21, underscoring broader market caution on AI investment costs.