Nvidia is so spooked by Google’s sudden AI comeback that it’s posting on X to defend itself

The defensive move came after Nvidia stock fell more than 2.5% on the news, and was close to closing, while Alphabet shares — buoyed by its new well-reviewed Gemini 3 model, which has won plaudits from well-known tech companies like Salesforce CEO Marc Benioff — rose for the third straight day.

The catalyst was a report from The Information claiming that Google was promoting its own AI chips, known as TPUs, to third-party companies including Meta and several major financial institutions. Google already leases these chips to customers through its cloud service, but expanding the use of TPU in customers’ data centers would represent a significant escalation in its competition with Nvidia.

That was enough to alarm Wall Street, as well as Nvidia itself.

“We’re thrilled with Google’s success — they’ve made great progress in AI, and we continue to supply Google,” Nvidia wrote in a post on X. “Nvidia is a generation ahead of the industry – it is the only platform that runs every AI model and does it everywhere computing happens.”

It’s not difficult to read between the lines. Google’s TPUs may be gaining more attention, but Nvidia wants investors and its customers to know that it still sees itself as unstoppable.

Brian Kerzmanek, bearish portfolio manager at GQG Partners, had anticipated this moment. In an interview with luck Late last week, he warned that the industry was beginning to recognize Google chips as a viable alternative.

“I think it’s something that’s been downplayed in the media, which is great, but Alphabet, the Google Gemini 3 model, they said they’re using their TPU material to train that model,” Kerzmanek said. “So Nvidia’s argument is that they’re on all platforms, while they’re arguably the most successful AI company right now, which is [Google]They didn’t even use GPUs to train their latest models.

Why is Google suddenly important again?

For much of the past decade, Google’s AI chips have been treated as an intelligent internal tool: fast, efficient, and closely integrated with Google’s own systems, but posing no real threat to Nvidia’s general-purpose GPUs, which monopolize more than 90% of the AI ​​accelerator market.

Part of that is architectural. TPUs are ASICs, which are custom chips optimized for a narrow range of workloads. In its X post, Nvidia was keen to emphasize the contrast.

“Nvidia delivers greater performance, versatility and replaceability than ASICs,” the company said, positioning its GPUs as a universal option that can train and run any model across cloud, on-premises and edge environments. Nvidia also pointed to its latest Blackwell architecture, which it insists remains a generation ahead in this area.

But last month there was a change in tone. Google’s Gemini 3 — trained entirely on TPUs — has received strong reviews and has been framed by some as a true counterpart to the best OpenAI models. And the idea that Meta could deploy TPUs directly inside its own data centers — reducing reliance on Nvidia GPUs in parts of its stack — signals a potential shift that investors have long wondered about but never saw coming.

Meanwhile, Perry’s battle escalates.

The defensive stance was not limited to Google. Behind the scenes, Nvidia has also been quietly battling another front: a growing feud with Michael Burry, the investor famous for predicting the 2008 housing crash and the central character in the Michael Lewis classic. The big short.

After Perry published a series of warnings comparing today’s AI boom to the dot-com and telecom bubbles — arguing that Nvidia is this cycle’s Cisco, meaning it similarly supplies the hardware needed for the build process but may suffer from extensive patches — the chipmaker circulated a seven-page memo to Wall Street analysts specifically refuting his claims. Perry himself revealed the memo on Substack.

Puri accused the company of excessive stock-based compensation, inflating depreciation schedules that make data center buildouts appear more profitable, and enabling “circular financing” in the AI ​​startup ecosystem. Nvidia, in its memo, went back line by line.

“Nvidia does not resemble historical accounting frauds because Nvidia’s core business is economically sound, our reporting is complete and transparent, and we care about our reputation for integrity,” she said in the memo. Baron He was the first to report.