[photo credit to Unsplash] 

Following a 3% fall in its shares on November 25, Nvidia posted on social media platform X, stating “NVIDIA is a generation ahead of the industry” in response to rising demands for Google’s AI chips, which may threaten its dominance in the AI industry. 

Nvidia’s chips have and continue to play a critical role in powering data centers behind many prominent AI models, including Open AI’s ChatGPT, the most popular AI assistant. 

Google also released its AI assistant named ‘Gemini’ in 2022, but ended up facing many struggles unlike the widespread success of ChatGPT.

However, with the recent launch of Gemini 3, Google is heading towards a totally new direction, gathering flowing acclaim and praise. 

The Wall Street Journal wrote “Google has finally overtaken competitors with Gemini” and Marc Benioff, founder and CEO of Salesforce commented, “The world has changed again. I've used ChatGPT every day for three years, and I've only used 'Gemini 3' for two hours, but I won't go back to ChatGPT.”

Not only this, Gemini 3 now sits at the top of leaderboards, achieving a 37.5% accuracy rate on the AI model evaluation site LM Arena, surpassing OpenAi’s GPT 5 Pro. 

It has been revealed that Google reduced its dependence on Nvidia by using its in-house chips, TPU,  instead of using  Nvidia's GPU to train its newest model. 

Due to the pouring acclaim towards Gemini 3, attention towards Google’s TPU chips has significantly increased in recent weeks as an alternative to Nvidia’s Blackwell chips. 

Even one of Nvidia’s key vendors, Meta, released a report planning to spend billions to power its data centers with AI chips developed by Google.

However, Nvidia upheld its stance, saying, "NVIDIA offers greater performance, versatility, and fungibility than ASICs,” in its post. 

This is true for a reason that Google’s chips and Nvidia's chips have different offerings, so they can’t be used as direct alternatives to each other. 

Nvidia continues to expand its reach further as of its recent agreements with the South Korean government, Samsung, LG, and Hyundai to supply some of its most advanced AI chips.

Unlike Nvidia, Google doesn’t sell its TPU chips to other companies and instead allows rent through Google Cloud. 

Many see this competition between Google and Nvidia as healthy for the market, as Dame Wendy Hall, professor of Computer Science at the University of Southampton says, "investment is pouring into this area”.

Due to the successful launch of Gemini 3, Alphabet’s market value has increased by nearly $1 trillion  since  mid-October, reaching $590 billion. 

Even so, Nvidia became the first company ever to be valued at $5 trillion in October. 

Therefore, questions regarding the future of Nvidia in its position in the AI industry of whether it will hold its dominating position or lose it still remain.