Alphabet is on track to reach a $4 trillion market valuation. The Google parent company saw shares rise 4% to around $331 in premarket trading on Tuesday. This milestone marks a year-long rally driven by the tech giant’s focus on artificial intelligence tools and infrastructure.
Meta Eyes Multibillion-Dollar AI Chip Deal
According to Reuters, Meta is in talks to spend billions of dollars on Google’s AI chips. The deal would place tensor processing units, or TPUs, in data centers by 2027. Meta may also rent chip capacity from Google’s cloud services unit starting in 2026.
The Information reported these discussions, citing a person familiar with the talks. The agreement would represent a major validation of Google’s chip technology. It would also help establish TPUs as a credible alternative in the AI hardware market.
Google Challenges Nvidia’s Chip Dominance
The potential Meta partnership shows Google making progress against Nvidia’s grip on AI chips. Big Tech companies are racing to build out data centers to meet surging AI demand. Google’s TPUs offer these firms another option beyond Nvidia’s dominant GPU offerings.
Elite Club of Tech Giants
Alphabet now joins a small group of Big Tech companies valued at historic levels. The search and advertising giant benefits from Wall Street’s continued enthusiasm for AI investments. The technology sector has seen sustained interest as artificial intelligence tools capture investor attention throughout the year.
Shares of Alphabet closed at $318.47 on November 24, up $18.82 or 6.28%. The premarket gains pushed the stock to $332.45, a 4.39% increase. This surge places the company within reach of the $4 trillion threshold when markets open.
If Meta seals the chip deal, it would mark a significant shift in the AI infrastructure landscape. The social media company’s decision to diversify its chip suppliers could reshape competitive dynamics. Google’s cloud unit stands to benefit from both direct chip sales and rental services.
