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The competition in the world of AI chips is going to intensify. There are discussions going on about a big deal between Meta and Google, which could directly challenge Nvidia’s dominance.
New Delhi. The use of Artificial Intelligence (AI) is increasing around the world. The competition in the world of AI chips has increased to such an extent that now the competition is not only for fast processors but also for the reputation of the tech giants. On one hand, Nvidia is trying to maintain its dominance, while on the other hand, Google and Meta have decided to change the direction of the game. Both the companies are now showing speed in preparing their in-house AI chips. This means that in the coming time, not just chips, but a new tech war is going to break out in the market.
According to reports, discussions are going on regarding a deal between Google and Meta. Nvidia, which was the king of the AI market, is now trying to defend its dominance strongly. The company says that its GPUs are still a generation ahead of the entire industry.
Nvidia shares fell
Amidst these news, investors’ concerns increased and Nvidia’s shares fell by about 3%. Reports say that Meta is considering using Google’s Tensor Processing Unit (TPU) in its data centers. This news became the major reason for the fall in Nvidia’s shares. Investors fear that this could trigger changes in the AI hardware supply chain and big companies could reduce their dependence on Nvidia.
Nvidia’s dominance may reduce
Google’s TPUs are designed for specific types of AI tasks. These prove to be more energy-efficient and lower cost in many cases. The challenge for Nvidia is that many big tech platforms are now considering mixed chip infrastructure, where some work will be done on GPU and some on home-made chips. This can reduce dependence on Nvidia.
Nvidia’s counterattack
Nvidia responded strongly to these speculations, saying that its GPUs are the only ones that can run every major AI model in all types of computing environments. The company described its new Blackbell GPU series as the most advanced and claimed that it is far ahead of expert chips in performance, flexibility and scalability.
Google’s in-house AI chips in discussion
Google’s TPUs made big headlines when the company’s new model Gemini 3 was trained entirely on its own chips, that too without Nvidia GPUs. Google does not sell its chips directly, but makes them available on rent through the cloud. The company says that the demand for both its custom chips and Nvidia GPUs is increasing rapidly.
Google’s chips vs. Nvidia’s GPUs
Google’s chips are optimized for specific AI tasks, so they are more cost-effective in some cases. Whereas Nvidia’s GPUs are for all types of AI models, all types of companies and all types of software stacks. This is the reason why despite all the gossip, Nvidia still holds more than 90 percent share of the AI chip market.
