Tech giant Google (GOOGL) is working to cut into chipmaker Nvidia’s (NVDA) lead in the AI space by improving how its own chips, called tensor processing units (TPUs), run PyTorch, a popular AI software framework. According to Reuters, Google is getting help from social media titan Meta Platforms (META), the original creator of PyTorch, which was released in 2016. PyTorch has traditionally worked best with Nvidia’s CUDA software, which has given Nvidia an edge in the AI market.
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To get more companies to use its chips, Google is thinking about open-sourcing parts of the software. In addition, the internal project, known as “TorchTPU,” is now getting more attention and resources from Google. By making it easier for developers to use PyTorch with Google’s TPUs, the company hopes to attract customers who might otherwise use Nvidia’s technology.
On top of that, Google and Meta are reportedly in talks about a deal that would have Meta start using Google’s TPUs. This move would help Meta reduce its dependence on Nvidia’s GPUs, while also giving Google a major partner in its push to increase TPU adoption. Interestingly, five-star analyst Gil Luria recently stated that Google’s TPU business alone could be worth $900 billion.
Is GOOGL Stock a Good Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on GOOGL stock based on 29 Buys and seven Holds assigned in the past three months. Furthermore, the average GOOGL price target of $323.73 per share implies 8.2% upside potential.
