To be clear, Nvidia’s graphics processing units (GPUs) remain the gold standard for the AI industry. But Google’s TPUs — which power its highly praised Gemini 3 — are cheaper to develop and require less power. Some industry experts estimate that TPUs offer up to four times better performance per dollar than comparable GPUs.

"I think some folks need some sleep," CEO Sundar Pichai said on a recent Google podcast about the company's Gemini 3 launch and AI ambitions.

Thus far, Nvidia's graphics processing units ( GPUs) have been the go-to hardware for training and running advanced AI models. The competitive edge provided by the company's high-end processors has allowed the business to command stellar pricing power and deliver a run of record-breaking earnings growth.

The stock has already more than doubled over the past year, currently trading around $380. Hence, the obvious question arises: what would be necessary to

Developers have been busy updating Google Messages, and are working to change how you save media, share your location, and interact with Gemini.

This means that Google still needs Nvidia GPUs, used in tandem with its own TPUs, to get the combination of speed and energy efficiency it needs to compete. It further suggests that, even if the reports are true, and Google's power-miserly chips cut into Nvidia's business, the company will still be the dominant player in the data center GPU space.

The internet giant has released new AI software and struck deals, such as a chip tie-up with Anthropic PBC, that have reassured investors the company won’t easily lose to ChatGPT creator OpenAI and other rivals.

When OpenAI unleashed ChatGPT, it awoke Google from its slumber. As Google now reimagines its business in the age of AI, big questions lie ahead.