A CNBC report that key customer Meta could partner with Google to use its Tensor Processing Units (TPUs) caused a 3% dip in Nvidia's stock. Nvidia asserted its chips are more flexible and powerful than the custom ASIC chips like Google's TPUs, claiming its product "offers greater performance, versatility, and fungibility than ASICs," CNBC reported.

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 offers greater…

— NVIDIA Newsroom (@nvidianewsroom) November 25, 2025

Analysts report Nvidia holds more than 90% of the AI chip market, but Google's proprietary chips are gaining attention as a potent, less costly substitute. Unlike Nvidia, Google does not sell its TPUs directly but offers them for lease through Google Cloud and uses them internally.

Earlier this month, Google launched its highly-rated Gemini 3 AI model, which was trained on its custom TPUs, not Nvidia GPUs. A Google spokesperson commented that demand for both custom TPUs and Nvidia GPUs is accelerating, and Google "We are committed to supporting both, as we have for years."

Nvidia CEO Jensen Huang addressed the TPU competition in his recent earnings call with investors, noting Google buys his GPUs and that Gemini can run on Nvidia technology. Huang confirmed contact with Demis Hassabis, Google DeepMind CEO, who texted that the theory on creating stronger AI by using more data and chips – known as "scaling laws" – is "intact." Nvidia believes this will drive even more demand for its systems, CNBC reported.

Hassabis texted that the theory on creating stronger AI by using more data and chips – known as "scaling laws" – is "intact." Nvidia believes this will drive even more demand for its systems, CNBC reported.

The post Nvidia vs. Google: Chip war escalates appeared first on www.israelhayom.com.