Nvidia responded strongly on Tuesday to growing Wall Street concerns that Google’s advanced AI chips could threaten its dominance in AI infrastructure. The company stated that its technology remains a full generation ahead of the rest of the industry.

In a post on X, Nvidia said, “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.”

The statement came after Nvidia’s shares dropped 3% following a report suggesting that Meta — one of Nvidia’s major customers — may consider using Google’s tensor processing units (TPUs) for its data centers.

Nvidia emphasized that its chips offer greater flexibility, performance, and versatility than Google’s TPUs, which are ASIC chips designed for specific functions. Nvidia’s newest generation, known as Blackwell, continues to attract high demand from AI developers and enterprises.

Analysts estimate that Nvidia controls more than 90% of the AI chip market through its GPUs. However, Google’s rapidly improving in-house TPUs have recently drawn more attention — especially as they power Google’s highly regarded Gemini 3 model.

Google confirmed that demand for both its custom TPUs and Nvidia GPUs has been accelerating, reinforcing that it plans to support both technologies.

Nvidia CEO Jensen Huang also addressed TPU competition in a recent earnings call. He highlighted Google as a key customer and noted that Google’s Gemini models can run on Nvidia GPUs. Huang added that he remains in close communication with AI leaders like Demis Hassabis of Google DeepMind, who assured him that the “scaling laws” principle of AI — more chips and more data lead to more powerful models — remains strong.

According to Nvidia, these scaling laws will continue driving massive demand for its chips and AI systems, even as competition intensifies.