Shares in chipmaker Nvidia sank about 4% Tuesday following a report that Meta is in talks to spend billions of dollars on chips from rival Google.

As part of the deal, Meta – the social media giant behind Facebook, Instagram and WhatsApp – would spend billions to use Google’s tensor processing units, or TPUs, in its own data centers in 2027, a person involved in the discussions told the Information .

The company is also in talks to rent Google chips from Google Cloud next year, the report stated.

Google could take as much as 10% of Nvidia’s annual revenue as a result of the deal, since Meta currently uses Nvidia’s graphics processing units, or GPUs, a person who heard the remarks told the Information.

That would equal billions of dollars in added revenue for Google, which is owned by

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