Nvidia has asserted that it is “a generation ahead” of its competitors in the artificial intelligence (AI) sector, despite increasing talk of a potential rival challenging its market supremacy and multi-trillion dollar worth.
The chip company’s stock experienced a decline on Tuesday, following news that Meta intended to invest billions in AI chips created by Google for its data centers.
In a message on social media platform X, Nvidia, recognized as the world’s most valuable corporation, highlighted that it is the sole platform capable of “running every AI model and doing so wherever computing takes place.”
In reaction to this, Google expressed its dedication to “supporting both” its own chips and those from Nvidia.
Nvidia’s chips have become essential for driving the data centers that support numerous popular AI applications, including ChatGPT.
In October, it made history by being the first company ever to reach a $5 trillion (£3.8 trillion) valuation.
The American corporation has been actively striving to broaden its influence in recent months, revealing a deal in October to provide some of its most cutting-edge AI chips to the South Korean government, as well as to major firms like Samsung, LG, and Hyundai.
Google offers access to its chips, known as tensor processing units (TPUs), via Google Cloud for AI developers, retaining these chips for its internal data centers.
However, if recent rumors are accurate regarding Google potentially negotiating to sell its chips for external data center use, it would mark a considerable shift in their strategy.
This development caused Nvidia’s stock to plummet nearly 6% on Tuesday, while Alphabet, Google’s parent company, saw its shares rise by almost the same percentage.
In the wake of the downturn, Nvidia made a post on X, asserting that it continues to deliver “greater performance” and “versatility” compared to the chips Google is developing.
Over the past year, both Amazon and Microsoft have revealed that they are also in the process of developing their own AI chips.
Dame Wendy Hall, a Regius Professor of Computer Science at the University of Southampton, commented on a program that the potential deal between Google and Meta represents a “healthy” development for the industry.
She stated, “Investment is flooding into this sector. Currently, there isn’t a substantial return on that investment, except for Nvidia.”
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