Nvidia Claims 'Generation Ahead' Advantage After $200 Billion Sell-off on Google Fears

Nvidia pushed back against investor concerns about Google's competitive positioning in AI on Tuesday after the chipmaker's shares tumbled 4.4% and erased nearly $200 billion in market cap on fears that Alphabet's tensor processing units were gaining ground against its dominance in AI computing. The company said it was 'delighted by Google's success' but asserted that it continues to supply chips to Google.

Nvidia said it remains 'a generation ahead of the industry' as the only platform that runs every AI model and operates everywhere computing is done. The statement came after investors reacted to the release of Google's Gemini 3 large language model last week. The model was trained using TPUs rather than Nvidia chips. A report in The Information on Monday said Google was pitching potential clients including Meta on using TPUs in their data centers rather than Nvidia's chips.

Nvidia said its platform offers 'greater performance, versatility, and fungibility than ASICs,' referring to application-specific integrated circuits like Google's TPUs that are designed for specific AI frameworks or functions. Google's TPUs have until now only been available for customers to rent through its cloud computing service. Nvidia has lost more than $800 billion in market value since it peaked above $5 trillion less than a month ago.

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