By Daniel Howley
Publication Date: 2025-12-05 10:19:00
Nvidia (NVDA) is the global AI chip leader, but word that Google (GOOG, GOOGL) could sell some of its own AI chips to Meta (META) has raised concerns that one of its biggest clients is becoming a major competitive threat.
According to a Nov. 24 report by the Information, Google’s deal with Meta could be worth billions of dollars.
That sent Nvidia’s stock price down 2.5% the day after the report. Nvidia also released a statement on X saying that it was happy for Google’s success, but that Nvidia’s own chips are a generation ahead of the search giant’s offerings.
On Tuesday, Amazon (AMZN) announced the public availability of its Trainium3 chip, saying that it can save up to 50% on training costs for AI software compared to alternatives.
But Google potentially selling its TPUs (tensor processing units) and Amazon providing access to its Trainium3 chips doesn’t necessarily mean that Nvidia is at risk of losing its lead in the AI race anytime soon.
It does, however, mean that Google and Amazon could end up taking their own share of the broader market as the global AI build-out continues to expand and companies look for alternatives to Nvidia amid a rush for its AI chips.
One of the main things to understand about the Nvidia versus Google and Amazon debate is that they don’t exactly offer the same products. Google’s TPUs and Amazon’s Trainium3 are types of chips called ASICs, or application-specific integrated circuits, meaning…