'Delighted by Google's success...but we are generation ahead of the industry', says Nvidia as it defends AI dominance

Nvidia

Nvidia has pushed back against fresh concerns about its AI dominance, telling investors it remains a generation ahead of the industry even as Google’s TPUs draw renewed attention. The company’s statement followed a 3 percent dip in Nvidia’s share price after reports suggested Meta may explore a deal to use Google’s tensor processing units in its data centres.

In a post on X, Nvidia praised Google’s progress but argued that its own platform is unmatched in versatility and performance. The company highlighted that its chips can run every major AI model across a wide range of environments, unlike application-specific chips such as Google’s TPUs, which are designed for narrower use cases.

Nvidia’s latest Blackwell chips, which sit at the core of its accelerated computing stack, were held up as an example of its edge. The company claimed its GPUs deliver superior flexibility and “fungibility” compared to ASIC-style hardware. Analysts estimate Nvidia still controls more than 90 percent of the AI chip market.

Google, however, has been gaining momentum. Its state-of-the-art Gemini 3 model was trained entirely on TPUs rather than Nvidia GPUs, and the company offers TPU access through Google Cloud. A Google spokesperson said demand is rising for both TPUs and Nvidia GPUs, reaffirming that it plans to support both.

Nvidia CEO Jensen Huang addressed the TPU competition during the company’s recent earnings call. He noted that Google remains a major customer and that Gemini models do run on Nvidia hardware. Huang also referenced conversations with DeepMind CEO Demis Hassabis, who reaffirmed that AI scaling laws still hold. Nvidia believes that continued scaling will drive even greater demand for its chips and end-to-end systems.

Despite the growing spotlight on Google’s TPUs, Nvidia’s message to investors is clear: the company still sees itself firmly in the lead as AI infrastructure demand accelerates worldwide.