NVIDIA
Turns out Google is ready to share its chips after all
Nvidia has pushed back at talk of growing competition, saying it is still “a generation ahead” in the AI chip market.
This came after reports that Meta may spend billions on Google’s AI chips for its data centres, news that caused Nvidia’s share price to dip.
Nvidia said on X that it remains the only platform that can run every major AI model across all types of computing.
Google replied that it plans to support both its own chips and Nvidia’s.
Nvidia hardware currently powers many of today’s leading AI tools, including ChatGPT.
The company reached a $5tn (£3.8tn) valuation in October and has been expanding, recently agreeing to supply advanced chips to South Korea’s government, Samsung, LG, and Hyundai.
Google’s tensor processing units (TPUs) are usually kept for its own data centres and accessed through Google Cloud. But reports suggest Google may now consider selling them to others, a notable change.
Three things to take away:
Meta exploring Google’s AI chips signals real competition in the market.
Nvidia insists it still leads on performance and compatibility.
More tech giants entering the chip race could shift the balance over time.
Market mood swings
The market reacted quickly: Nvidia shares dropped nearly 6%, while Alphabet’s rose by a similar amount.
Nvidia later said its chips still offer stronger performance and flexibility.
Amazon and Microsoft are also developing their own AI chips, adding more competition.
Dame Wendy Hall, Regius Professor of Computer Science at the University of Southampton, said a potential Google–Meta deal could be “healthy” for the market, as most returns so far have gone to Nvidia.
Nvidia is giving itself awards again. - MV