NVDA

Breaking: Nvidia $NVDA Responds to Google $GOOGL TPU Headlines

 

Nvidia responded to reports on Google’s TPU expansion, saying it remains a key supplier to Google and continues to lead the AI hardware industry.

 

“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. NVIDIA is the only platform that runs every AI model and does it everywhere computing is done. NVIDIA offers greater performance, versatility, and fungibility than ASICs, which are designed for specific AI frameworks or functions.” — NVIDIA spokesperson

 

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By the 5 with Fitz 

Meta to Google: “We’ll take billions worth of your AI chips, please.” 

Most folks are reading today’s headlines and assuming that Meta exploring Google’s TPUs is the beginning of Nvidia’s pricing power cracking. (Read) 

 

I see it differently and as a far more bullish proposition. 

 

Meta’s already on pace to spend around $100 billion on Nvidia hardware… and they’re still capacity-constrained. 

 

In other words, they’re not not buying Nvidia but, rather, buying more chips because they have to stack on top of that to meet AI demand. Even if Nvidia doubled output tomorrow, Meta would likely still be short of chips. 

 

This is an opportunity of epic proportions.