'Generation Ahead': Nvidia's Message To Google As AI Chip Rivalry Escalates
Following the rally that took place on the back of reports of talks with Meta over TPUs, Alphabet's market capitalisation reached almost $4 trillion for the first time.
Meta is in talks with Google to spend billions on its tensor processing units (TPUs), The Information reported on Tuesday, leading to a rally in Alphabet shares while Nvidia shares tanked as much as 2.6% on Tuesday's session.
In light of the stock reaction, coupled with reports of a potential AI chip war between Nvidia and Google, the former issued a statement on Tuesday, congratulating Google on its recent success without mentioning any details about the talks with Meta.
Through a social media post on X, Nvidia said Google has made great advances and continues to remain a key partner for the company, before going on to gloat about Nvidia's own chip capabilities and how it is 'a generation ahead of the industry'.
"We’re delighted by Google’s success — they’ve made great advances in AI and we continue to supply to Google. 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," Nvidia said.
Following the rally that took place on the back of reports of talks with Meta over TPUs, Alphabet's market capitalisation reached almost $4 trillion for the first time, as the company continues to enjoy an AI-led glow-up over the past month or so.
Nvidia, in contrast, has taken a massive hit, with the stock down 7% over a one-month period and 14% from Nov. 3's peak.
As a result, Nvidia, which recently became the first company to reach $5 trillion valuation, is now running the risk of losing its crown as the most valued company in the world to Apple.
With a valuation of almost $4 trillion, Google is no longer a distant third either, as both Alphabet and Google potentially gear up for an elongated period of AI chip battle.
