Nvidia News : Nvidia Releases Unexpected Comment on New Chip King
Nvidia has a competitor in the artificial intelligence (AI) chip market following the emergence of Google with its Tensor Processing Unit (TPU) chip. Nvidia CEO Jensen Huang then commented on Google's progress in the AI chip sector.
Huang emphasized that their technology is still a generation ahead of the industry, even though Wall Street is starting to worry that Nvidia's dominance could be displaced by Google's innovation.
"We're thrilled with Google's success; they've made significant progress in AI, and we continue to supply Google,"
Nvidia wrote in a post on X.
"Nvidia is the only platform that runs all AI models and does so everywhere computing occurs."
This statement came after Nvidia shares fell 3% following a report that Meta one of Nvidia's largest customers was being considered by Google for using its TPUs in the company's data centers.
In its statement, Nvidia emphasized that its chips are more flexible and powerful than ASIC chips like Google's TPUs, which are designed for specific functions. Nvidia also promoted its latest generation of chips, Blackwell, which it said were superior in performance and broad application.
"Nvidia offers greater performance, flexibility, and fungibility than ASICs,"
the company wrote.
Currently, analysts estimate Nvidia controls more than 90% of the AI chip market thanks to its industry standard GPUs. However, Google's in house chips are starting to attract attention as an alternative to the notoriously expensive but powerful Blackwell.
Unlike Nvidia, which sells chips to various companies, Google doesn't sell its TPUs, but instead uses them internally and leases them through Google Cloud.
Google's momentum grew after the release of Gemini 3, its latest AI model, which received positive reviews. Interestingly, the model was trained using Google TPUs, not Nvidia GPUs.
Google itself stated that demand for its TPUs has increased rapidly, even though demand for Nvidia GPUs remains high.
"We're experiencing accelerated demand for our custom TPUs and Nvidia GPUs,"
said a Google spokesperson.
"We're committed to supporting both, as we have for years."
Nvidia CEO Jensen Huang previously addressed the growing TPU competition in his monthly earnings report. He stated that Google remains an important customer, and that models like Gemini can still run on Nvidia technology.
Huang also said he communicated with Google DeepMind CEO Demis Hassabis. According to Huang, Hassabis emphasized that the tech industry theory that increasing chips and data will lead to more powerful AI, known as scaling laws, still holds true.
Nvidia believes that scaling laws will actually increase demand for its GPUs and systems in the future, not reduce it.
