Nvidia said on Tuesday that its technology maintains a full generational lead over the competition, directly addressing Wall Street’s concerns about potential challenges from Google’s new AI chips.

“We’re delighted by Google’s success — they’ve made great advances in AI and we continue to supply to Google,” Nvidia said in a post on X. “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.”

Nvidia issued this response following a 3 per cent drop in its shares on Tuesday.

The decline was triggered by a report that Meta, a key Nvidia customer, might sign a deal to use Google’s custom Tensor Processing Units in its data centers.

In its post, Nvidia argued that its chips, like the new Blackwell generation, offer greater flexibility and power than specialized ASICs like Google’s TPUs, which are built for a single company or function.

“NVIDIA offers greater performance, versatility, and fungibility than ASICs,” Nvidia said.

Analysts estimate Nvidia commands over 90 per cent of the AI chip market with its graphics processors.

However, Google’s in-house TPUs are gaining traction as a viable alternative to Nvidia’s powerful but expensive new Blackwell chips.

Unlike Nvidia, Google does not sell its TPUs; instead, it uses them for its own operations and offers them for rent through its cloud platform.