Gemini 3.0 and Google's custom AI chip edge

Core Insights - Alphabet's stock reached all-time highs following the release of its latest AI model, Gemini 3.0, which has climbed to the top of third-party AI rankings and was trained entirely on Google's custom Tensor Processing Units (TPUs) [1][2] Group 1: TPU Development and Impact - TPUs, previously viewed as a niche tool, have demonstrated their capability to train and serve advanced AI systems at a global scale, indicating a significant shift in Google's technical execution [2] - The re-engagement of co-founder Sergey Brin and the return of Nom Shazir, who were instrumental in establishing Google's AI advantage, coincides with this development [3] Group 2: Competitive Landscape - Other companies, including Anthropic, Apple, OpenAI, and Meta, are also adopting or testing TPU infrastructure, with Anthropic committing to utilize up to a million TPUs over the next few years, valued at tens of billions of dollars [3] - While GPU demand is not expected to decline immediately, the rise of TPUs suggests a potential reduction in Nvidia's dominance in the long term, positioning Google favorably in the competitive landscape with its integrated stack of chips and ecosystem [4]