A report that Alphabet is picking up efforts to compete with Nvidia in offering artificial-intelligence chips is the latest tailwind for the Google parent's stock.
Google is talking to Meta Platforms and others about using its AI chips, known as TPUs, in their own data centers, the Information reported. It already rents these TPUs to customers who use Google Cloud data centers.
Other customers that Google is pitching the idea to include big financial institutions, the news outlet reported, citing people familiar with the talks.
-- Alphabet shares rose more than 3% premarket. They have surged 10% in the past two sessions after its latest Gemini AI system drew praise.
-- Shares in Broadcom, which works with Google in its chipmaking efforts, added 2%.
-- Nvidia stock dropped 4% premarket.
-- Shares in rival players AMD and Intel also traded lower before the opening bell.
The Information cited a Google spokesperson as saying it was "experiencing accelerating demand for both our custom TPUs and Nvidia GPUs; we are committed to supporting both, as we have for years." It said Meta declined to comment.