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Nvidia has claimed it is “a generation ahead” of rivals in the artificial intelligence (AI) industry amid growing suggestions a rival may emerge to threaten to its market dominance – and multi-trillion dollar valuation.<\/p>\n
Shares in the chip giant fell on Tuesday, following a report Meta planned to spend billions on AI chips developed by Google to power its data centres.<\/p>\n
In a statement on X, Nvidia, the world’s most valuable company, said it was the only platform which “runs every AI model and does it everywhere computing is done”.<\/p>\n
In response, Google said it was committed to “supporting both” its own and Nvidia’s chips.<\/p>\n<\/div>\n
Nvidia’s chips have become a critical part of powering the data centres behind many of the most popular AI tools, such as ChatGPT.<\/p>\n
In October it became the first company ever to be valued at $5tn (\u00a33.8tn)<\/a>.<\/p>\n The American firm has been looking to expand its reach further in recent months, announcing an agreement in October<\/a> to supply some of its most advanced artificial intelligence (AI) chips to South Korea’s government, as well as Samsung, LG, and Hyundai.<\/p>\n<\/div>\n Google rents access to its chips, called tensor processing units (TPUs), through Google Cloud to AI developers.<\/p>\n In other words, they are not sold externally – but kept for the tech giant’s own data centres.<\/p>\n But if recent reports are correct – that the tech company could be in talks to sell its chips to power other data centres – it would represent a significant change.<\/p>\n The news saw Nvidia shares fall nearly 6% on Tuesday, whilst those in Alphabet, Google’s parent company, rose by nearly the same percentage.<\/p>\n In the hours following the drop, the chip giant posted on X to state it still offered “greater performance” and “versatility” than the types of chips Google is producing.<\/p>\n