Nvidia's Power Over 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 potentially using Google (NASDAQ: GOOG)'s tensor processing units (TPUs). In a post on X, Nvidia emphasized that its graphics processing units (GPUs) are a generation ahead in the industry and can operate wherever AI models do.

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Nvidia highlighted the versatility of Blackwell chips, whereas the TPU designs, which operate in a narrower domain as ASIC-style designs, offer less flexibility. Google does not sell TPUs directly; instead, 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 prompted customers to consider alternatives to GPU-heavy systems.

Nvidia CEO Jensen Huang pointed out 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 suggests that computing requirements may increase.

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