Meta's GPU Switch Could Reshape the AI Chip Market

The Plot Twist Nobody Saw Coming

Bloomberg just dropped a bombshell: Meta is eyeing Google’s TPUs instead of Nvidia’s GPUs for its AI data centers. AMD stock immediately tanked 7.9% on the news—and honestly, it deserved to.

Who Actually Wins Here?

Google scores the biggest W. Convincing a major AI player to subsidize its chip business? That’s a power move. Meta gets cheaper infrastructure. Sounds good on paper.

Nvidia takes the hardest hit—losing Meta as a customer to a new rival is brutal when you’ve been the default choice for AI workloads.

AMD’s in an awkward spot. The whole bull case hinged on Meta potentially buying its GPUs. With that option apparently off the table, AMD’s valuation (100x trailing earnings) suddenly looks risky. For consistent double-digit profit growth to justify that multiple? Unlikely now.

The Real Question

This isn’t just about one deal. It signals the AI chip market is getting crowded. Custom silicon is becoming the move—cheaper, optimized, locked in. That’s bad news for any standalone GPU maker banking on Meta as a growth driver.

If you’ve been holding AMD on the Meta thesis, it might be time to rethink that thesis.