Nvidia Stock Drops 3% as Meta Eyes Google Partnership, Threatening AI Chip Dominance
Summary
Nvidia stock plunges 3% as Meta considers ditching the chip giant's GPUs for Google's tensor processing units in data centers, while Google's new Gemini 3 AI model trained entirely on its own TPUs threatens Nvidia's 90% stranglehold on the AI chip market.
Key Points
- Nvidia stock falls 3% amid reports that Meta considers partnering with Google to use tensor processing units instead of Nvidia's GPUs for data centers
- Nvidia responds by claiming its technology remains 'a generation ahead' of competitors and offers greater performance and versatility than Google's specialized ASIC chips
- Google releases state-of-the-art AI model Gemini 3 trained on its own TPUs rather than Nvidia hardware, intensifying competition in the AI chip market where Nvidia holds over 90% market share