NVIDIA's stock experienced a significant drop, falling around 3% in pre-market trading on November 25, 2025. The decline followed a report that Meta Platforms is in discussions to purchase billions of dollars worth of Google's Tensor Processing Units (TPUs), a rival to NVIDIA's AI chips. This potential deal is seen as a major competitive threat to NVIDIA's stronghold on the AI accelerator market. The reported talks involve Meta potentially using Google's TPUs in its data centers starting in 2027 and possibly renting the chips from Google's cloud division as early as next year. Such an agreement would validate Google's TPUs as a viable alternative for major tech companies, potentially impacting NVIDIA's future sales and pricing power. In response to the news, Google's parent company, Alphabet, saw its stock rise by 2.7%. This development introduces a significant new dynamic into the AI chip landscape, where NVIDIA has been the dominant force. A partnership between two major players like Meta and Google could signal a shift in the market, creating more intense competition for NVIDIA and potentially impacting its long-term growth trajectory in the lucrative AI sector.