India, Nov. 25 -- Meta Platforms Inc. is reportedly in talks to spend billions on Google's Tensor AI chips, which are powering its industry-benchmark Gemini 3 model. Nvidia Corp. shares plunged even as Alphabet Inc.'s shares surged on the news.

The parent company of Facebook, Instagram and WhatsApp is in discussions to use Google's tensor processing units in AI data centres in 2027, The Information reported, citing sources. Meta may also rent chips from Google Cloud next year.

A deal here would help establish Google Tensor as an alternative to Nvidia's chips-currently the gold standard to run AI computing power. Google already supplies up to 1 million Tensor chips to Anthropic PBC, in what has been called a "really powerful validaton" f...