Nvidia says its GPUs are a 'generation ahead' of Google's AI chips

Core Viewpoint - Nvidia asserts that its technology remains a generation ahead of the industry, despite concerns regarding competition from Google's AI chips [1][2]. Company Position - Nvidia claims its chips are more flexible and powerful than ASIC chips, such as Google's TPUs, emphasizing that its latest generation, known as Blackwell, offers greater performance, versatility, and fungibility [3]. - Nvidia holds over 90% of the market for artificial intelligence chips with its graphics processors, although Google's in-house chips have gained attention as a potential alternative [4]. Market Dynamics - Nvidia's shares fell 3% following reports that Meta, a key customer, might partner with Google to utilize its tensor processing units for data centers [2]. - Google recently launched Gemini 3, a state-of-the-art AI model trained on its TPUs, which has been well-received [5]. Industry Trends - Nvidia's CEO Jensen Huang noted that the theory of "scaling laws" in AI development, which suggests that using more chips and data leads to more powerful AI models, remains valid and will drive further demand for Nvidia's chips and systems [6].