Nvidia, the chipset making giant has now downplayed concerns that Google is coming for its dominance in the AI hardware market, even as reports Meta may spend billions on Google’s custom chips. The comments come at a time when competition is increasing in the AI race and a volatile stretch for Nvidia’s stock. In a statement posted on X, Nvidia said, “NVIDIA is a generation ahead of the industry — it’s the only platform that runs every AI model and does it everywhere computing is done.” The company added: “We’re delighted by Google’s success — they’ve made great advances in AI and we continue to supply to Google.”The remarks made by Nvidia is followed by a report from The Information highlighting that Meta is in talks with Google to potentially use its chips to power data centers, a move that rattled the investors. Also, the share of Nvidia fell more than 3% following this news.

According to The Information, Meta could begin renting TPUs from Google Cloud as early as next year, with purchases for its own data centers potentially starting in 2027. This matters enormously because Meta ranks among Nvidia’s largest customers, planning up to $72 billion in AI infrastructure spending this year. For Google to capture even a fraction of that business would represent a seismic shift in the AI hardware market.The deal would also mark Google’s expansion beyond its current strategy of using TPUs exclusively in its own data centres, positioning the company in direct competition for the hundreds of billions being spent on AI processors.

Google’s position in the AI race

As reported by Business Insider, Google replied by stressing that its commitment to supporting both its own Tensor Processing Units (TPUs) and Nvidia’s GPUs. “We are experiencing accelerating demand for both our custom TPUs and Nvidia GPUs; we are committed to supporting both, as we have for years,” a Google spokesperson said.Recently, Google gained momentum in the AI race after the launch of Gemini 3 and the model also received positive reviews. Unlike many rivals, Google benefits from a “full-stack” advantage, controlling everything from AI research to its cloud infrastructure.

Wall Street takes notice as competitive dynamics shift

The rivalry between Nvidia and Google comes at a time, when the world’s largest company by market capitalisation has faced a turbulent few weeks. The chipmaker reported blockbuster third-quarter earnings, initially calming fears of an AI bubble. But lingering doubts resurfaced as competition from Google and others intensified.