Nvidia has reiterated its dominance in the AI chip market, claiming it is “a generation ahead” of competitors amid reports that Google may sell its tensor processing units (TPUs) to Meta to power data centers. Shares in Nvidia fell nearly 6% following the news, while Alphabet shares rose by a similar margin.
The company emphasized that its platform supports every AI model and can run across all computing environments, highlighting its chips’ central role in powering AI tools like ChatGPT. In October, Nvidia became the first company to reach a $5 trillion valuation.
Recent deals have expanded Nvidia’s reach, including supplying advanced AI chips to South Korea’s government, Samsung, LG, and Hyundai. Google currently uses TPUs in-house but may begin external sales, potentially increasing competition in the AI hardware space.
Experts note that the entry of additional players, including Amazon and Microsoft, into AI chip development could create “healthy” market competition while Nvidia maintains claims of superior performance and versatility.
