Company responds to Wall Street concerns
Nvidia reaffirmed that its technology remains a full generation ahead of the industry on Tuesday, responding directly to concerns that Google’s AI chips could threaten its leadership in the artificial intelligence hardware market.
In a post on X, the company said: “We’re delighted by Google’s success — they’ve made great advances in AI and we continue to supply to Google. NVIDIA is a generation ahead of the industry — it’s the only platform that runs every AI model and does it everywhere computing is done.”
Shares react after Meta reports
The statement followed a session in which Nvidia dropped around 3 percent, after a report suggested Meta could partner with Google to use its tensor processing units for future data center expansion. Nvidia highlighted that its Blackwell chips offer broader flexibility compared with ASIC designs, such as Google’s TPUs, which are built for specific functions.
“NVIDIA offers greater performance, versatility, and fungibility than ASICs,” the company added.
AI chip rivalry intensifies
Nvidia still controls more than 90 percent of the AI chip market with its graphics processing units, according to analysts. However, Google’s in-house hardware has gained increased visibility in recent months, especially as an alternative for companies seeking the same capabilities at scale.
Google does not sell its TPU chips commercially, but it uses them internally and provides cloud customers with rental access. Earlier in November, Google released Gemini 3, a flagship AI model trained using the company’s TPUs.
“We are experiencing accelerating demand for both our custom TPUs and Nvidia GPUs,” a spokesperson for Google said. “We are committed to supporting both, as we have for years.”
Nvidia says demand will keep growing
Nvidia CEO Jensen Huang recently addressed the issue on an earnings call, noting that Google remains a major customer and that Gemini can also run on Nvidia systems. He added that he had been in contact with Google DeepMind CEO Demis Hassabis.
Huang shared that Hassabis texted him saying that the “scaling laws” theory — the idea that more computing power and data lead to more advanced AI — is still valid. Nvidia argues that this will continue to fuel growing demand for its chips.
