Nvidia now appears to be in a stronger competitive deadlock with Google, who is now supplying tensor chips to Meta, as per a CNBC report.
Drawing insights from an exclusive by The Information, the report says that Meta was looking at Google’s Tensor Processing Units as a suitable choice of chips for its data centers in 2027.
That means Meta chose Google’s infrastructure over Nvidia’s Blackwell chip, which has been a staple ordered in bulk by tech companies, pure-play AI companies, and even countries looking to develop relevant infrastructure in the field.
The update marks a new reality for the company, which crossed $5 trillion in market capitalisation on the back of an AI-valuation frenzy. Nvidia now has to deal with tech companies forming the magnificent seven who want to have ample choice when choosing their suppliers, or at least maintain their independence in this new market.
Sales of the Blackwell have been skyrocketing and mark a strong product-fit shift for the company, which previously had a strong track record for manufacturing GPUs for gaming.
The Nvidia B200 chip and its stacked variations are in high demand now by firms that want to create data centres, a monumental task that requires huge amounts of space and computing power.
The shift to AI has been so lucrative for NVIDIA that it has managed to secure a huge portion of its $57 billion revenue ($51.6 billion) and, at the same time, stir heightened competition from old rivals such as AMD, another company known for its gaming graphics cards—such as AMD Radeon—and equally capable of creating the same chips
At one point, both firms were supplying chips to China until banned by the U.S. amid trade tensions, saying shortly after in July that they would resume sales once the ban was lifted.
Shares of Nvidia were trading at $176.32 at the time of reporting.