AI Dominance Incoming?
Alphabet is having a massive moment. Today’s news highlights just how quickly the company is shifting from AI follower to full-stack AI powerhouse.
The headline: Alphabet is reportedly in talks with Meta to supply or lease its custom TPU (Tensor Processing Unit) chips, a bold move that puts Google squarely in competition with Nvidia’s dominance in AI hardware. For years, Google kept TPUs mostly for internal use, but now the company is ready to commercialize its silicon at scale. If the deal lands, Meta could begin using Google’s cloud-based TPU compute as early as next year, with larger deployments in the years ahead.
In addition the latest Gemini 3 LLM has become very good critics and shows that they are among the leaders of the space, being able to compete with ChatGPT.
The market reaction? Pure enthusiasm. Alphabet’s stock has more than doubled since April, marking one of the strongest stretches in company history. AI-driven growth has fueled record quarters, and investors are clearly betting that Alphabet’s in-house chips could become a major new revenue engine.
PS: Some people in Omaha are running around with big smiles on their face these days, Berkshire seems to have made a big point here with their entry into $GOOGL a few months ago. See my post last week.
