Nvidia's Power in AI Remains Unshaken

Nvidia Responds to Competition Trying to Shake Its AI Leadership

Nvidia (NASDAQ: NVDA) defended its strong position in the AI field against the possibility of Meta (META) using tensor processing units (TPUs) produced by Google (NASDAQ: GOOG). Nvidia emphasized in a post on X that graphics processing units (GPUs) are a generation ahead in the industry and can operate wherever AI models run.

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Nvidia highlighted the flexibility of Blackwell chips, which offer a wide variety of use cases, in contrast to TPUs that work in a narrower domain as ASIC-style designs. Google does not sell TPUs directly; it uses these units internally and makes them available through Google Cloud.

Google's latest model, Gemini 3, has been trained on TPUs and has received positive feedback. This interest has led customers to consider alternatives to GPU-heavy systems.

Nvidia CEO Jensen Huang pointed to the relationship between the number of chips produced and the amount of data to be processed, stating that producing more chips leads to better models. This situation provides a hint that computational requirements may increase.

The message for investors is clear: competition is heating up, but both GPUs and TPUs can gain additional business opportunities alongside the growing AI workloads.