Nvidia stock dropped 5% after reports of potential competition from Google, which may use its AI chips in data centers by 2027. Google is seeking to sell TPUs to other cloud customers, aiming to grab 10% of Nvidia’s revenue. AMD stock also fell over 8% in response.

Speculation suggests Google is expanding its AI chip business to directly rival Nvidia. Investing firm DA Davidson estimates Google’s TPU business and DeepMind AI segment could be worth $900 billion. Nvidia stock had reversed gains as concerns over the AI bubble intensified.

Nvidia has faced criticism for circular AI deals and investing in its own customers. Michael Burry bets on the company’s decline, comparing the AI market to the dot com bubble. Nvidia has sought to dispel concerns over its accounting practices in a memo to Wall Street analysts, emphasizing transparency and integrity.

Read more at Yahoo Finance.: Nvidia stock falls after report says Google, Meta in talks for multibillion-dollar AI chip deal