Nvidia plays down Google chip threat concerns

Nvidia has claimed it is "a generation ahead" of rivals in the artificial intelligence (AI) industry amid growing suggestions a rival may emerge to threaten to its market dominance - and multi-trillion dollar valuation.

Shares in the chip giant fell on Tuesday, following a report Meta planned to spend billions on AI chips developed by Google to power its data centres.

In a statement on X, Nvidia, the world's most valuable company, said it was the only platform which "runs every AI model and does it everywhere computing is done".

In response, Google said it was committed to "supporting both" its own and Nvidia's chips.

Nvidia's chips have become a critical part of powering the data centres behind many of the most popular AI tools, such as ChatGPT.

In October it became the first company ever to be valued at $5tn (£3.8tn).

The American firm has been looking to expand its reach further in recent months, announcing an agreement in October to supply some of its most advanced artificial intelligence (AI) chips to South Korea's government, as well as Samsung, LG, and Hyundai.

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