In November 2025, the AI technology sector is witnessing a major shakeup as Google financed :Alphabet Inc. launches its new Gemini 3 model and begins publicly offering advanced AI chips known as tensor processing units (TPUs) to external clients. Industry analysts are noting a real challenge to Nvidia [finance:NVIDIA Corporation]’s established dominance in the global AI hardware landscape, with significant commercial and financial repercussions.
- Gemini 3, Google [finance:Alphabet Inc.]’s latest large language model, was trained entirely on proprietary TPUs rather than Nvidia [finance:NVIDIA Corporation]’s graphics processors. Early reviews position Gemini 3 as rivaling OpenAI’s leading models and resetting the competitive chess board in AI.
- Reports have emerged of Meta evaluating a multi-billion dollar deal to use Google [finance:Alphabet Inc.] TPUs in its data centers, which could reduce dependency on Nvidia [finance:NVIDIA Corporation] hardware and accelerate competitive disruption.
- Nvidia [finance:NVIDIA Corporation], which has traditionally held over 90% market share in AI chips, responded by emphasizing the flexibility and power of its latest Blackwell architecture, while acknowledging Google’s [finance:Alphabet Inc.] growing ecosystem and continued purchase of Nvidia [finance:NVIDIA Corporation] GPUs for many use cases.
- The rivalry has shaken investor sentiment: Nvidia [finance:NVIDIA Corporation]’s shares fell by as much as 7% within days, with Alphabet’s stock rising over 6% and approaching a new historic valuation.
- Analysts highlight that Google’s [finance:Alphabet Inc.] shift towards external AI chip sales marks a strategic escalation, as TPUs are offered for rent via Google Cloud and now pitched directly to top players like Meta and large financial institutions.
- Nvidia [finance:NVIDIA Corporation]’s Blackwell series continues to dominate general-purpose AI, but Google’s [finance:Alphabet Inc.] specialized chips show strong efficiency and performance for targeted workloads.
- The competitive dynamic is driving innovation, investment, and fresh alliances across the sector as organizations evaluate their AI infrastructure strategies.
Experts acknowledge that while Nvidia [finance:NVIDIA Corporation] is not likely to lose its market position overnight, Google [finance:Alphabet Inc.]’s aggressive push and rapid technical advancement are reshaping the AI hardware landscape and pressuring rivals to innovate further. The coming months are expected to feature new product launches, investor updates, and more client deals as competition intensifies.
