Hajra Naz
Nvidia pushed back after fresh reports hinted that Google could challenge its chip dominance. The company moved quickly because the news sparked concern across the AI chip market.
A report said Meta is in talks with Google to buy large volumes of its chips for future data center expansion. That single story sent Nvidia’s stock sliding more than 3% by Tuesday afternoon.
Nvidia said the concern is misplaced. The company repeated its stance in a direct statement on X.
“Nvidia is a generation ahead of the industry. It is the only platform that runs every AI model, and it does it across all major computing environments.”
Nvidia stressed that Google’s progress in AI chips doesn’t threaten its core position in the GPU market.
“We’re delighted by Google’s success. They’ve made strong advances in AI, and we continue to supply to Google.”
The message aimed to calm investors who fear a shift toward Google’s custom chips.
Google’s Side of the Story
Google gave a measured reply. A spokesperson said demand for both systems is rising fast.
“We are experiencing accelerating demand for both our custom TPUs and Nvidia GPUs. We are committed to supporting both, as we have for years.”
Google’s dual-chip strategy reflects the growing scale of AI workloads. The company uses its TPUs for internal training while also relying on Nvidia’s GPUs for external cloud customers who want large-scale AI acceleration.
Google gained fresh attention after its Gemini 3 launch. Reviewers said the model shows a sharper push in the AI race. The company also benefits from what analysts call a “full-stack” advantage. Google controls AI research, the cloud layer, and the deployment pipeline. This gives it tighter control over performance and cost.
Nvidia’s Recent Market Pressure
Nvidia’s last few weeks have been rough. The company delivered strong third-quarter earnings, which briefly eased doubts about an AI bubble. But those doubts returned as new chip competitors gained momentum and investors questioned how long the GPU boom could run.
The combination of chip rivalry news, AI competition, and shifting cloud infrastructure priorities added more stress on Nvidia’s valuation. Still, Nvidia insists its leadership in advanced GPUs, AI hardware acceleration, and developer ecosystems keeps it ahead.
