Nvidia said it was “a generation ahead” of competitors after reports that Meta may buy AI chips from Google. The news sparked a drop in Nvidia shares on Tuesday.
In a post on X, Nvidia also said it is the only platform that “runs every AI model and does it everywhere computing is done.” Google replied that it plans to be “supporting both” its own chips and Nvidia’s.
Nvidia’s processors power many AI services, including popular tools like ChatGPT. The firm reached a $5tn valuation in October and has been expanding into new markets. It recently agreed to supply advanced AI chips to South Korea and to companies such as Samsung, LG and Hyundai.
Google currently rents access to its tensor processing units (TPUs) through Google Cloud, mainly for use in its own data centres. If Google starts selling those chips to other companies, that would be a major shift.
After the report, Nvidia shares fell about 6% while Alphabet’s stock rose by a similar amount. Nvidia later posted on X saying its chips still offer “greater performance” and “versatility” compared with the types of chips Google is making.
The market will watch closely to see if Google moves to sell its chips more broadly and whether that changes the competitive landscape for AI hardware.
Leave a comment