Alphabet’s shares rose 8% this week after reports indicated that Meta is set to purchase billions of dollars of Google’s TPU processors to enhance its AI data centers. This potential deal positions Google to capture a share of Nvidia’s data center chip market, enticing companies to seek more affordable alternatives. Recently, AI developer Anthropic ordered one million TPUs, reinforcing confidence in Google’s hardware offerings. Alphabet’s Gemini 3 launch has shifted perceptions about its AI capabilities, making it a strong competitor against OpenAI and Nvidia. The AI model features advanced reasoning and seamless integration across platforms, contributing to a stock surge, with a market cap nearing $4 trillion. Google is also marketing TPUs for use in customer data centers, making strides against Nvidia. The combination of Gemini 3, Waymo, and Cloud investments solidifies Alphabet’s competitive position in AI infrastructure, steering the company from an ad-centric model to a key player in AI technology.
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