Nvidia shares fell more than 6% on Tuesday, wiping billions from the chipmaker’s market capitalization after a report revealed that Google is in talks to supply Meta with its custom AI chips by 2027.

The move would mark a significant shift in Google’s chip strategy, expanding from renting TPU access via its cloud platform to directly selling the hardware to external clients. That would place Google in direct competition with Nvidia in the fast-growing market for AI data center infrastructure, where Nvidia currently holds a dominant position.

The report, first published by The Information, raised concerns that one of Nvidia’s top cloud customers could turn into a rival, signaling longer-term demand risk just as the company faces mounting competition from other players like AMD.