Google and Meta To Build Their Own AI Chips

In light of the increasing demand for NVIDIA’s AI chips, technology companies are experiencing chip shortages to support their operations and applications. To this end, Google and Meta are reportedly building their own AI chips to power their inhouse applications. Granted, their chips won’t be as superior as NVIDIA’s, but even a 10% less powerful chip is still very suitable for their specific inhouse needs versus NVIDIA’s chips which are more powerful, but general purpose. NVIDIA’s more superior chips are used in a wide variety of applications such as text-to-image generations, AI chatbot training, and recommendation algorithms in social media sites as TikTok and Instagram. Meta and Google’s chips will be more tailored however to their companies’ specific needs.

With new entrants like Google and Meta into the AI chip market, will this reduce NVIDIA’s market share and valuation? NVIDIA’s top AI chips are currently selling for around $25,000 each and the company is valued at $2.7 Trillion.