NVIDIA's CEO has dismissed the fears of the firm's chips being replaced by ASICs, instead claiming that most such projects would end up being abandoned.
NVIDIA's CEO Doesn't Seem to Be Influenced By Custom Chip Projects From Microsoft or Google, Saying That They Won't Do Much
Team Green is progressing rapidly in the AI domain, defying scaling and performance laws by introducing newer architectures quickly. NVIDIA has no fear of being irrelevant in the modern-day AI market, and instead, is aware that without it, the computational segment cannot thrive. However, seeing how heavily Big Tech relies on NVIDIA's chips, many of the companies have now started the pursuit of developing ASICs, such as Microsoft's Maia or Amazon's Graviton chips, but Jensen's latest comments at GTC Paris 2025 show that NVIDIA isn't too worried after all, and instead knows that such projects won't do much to the company's influence on the markets.
First of all, a lot of ASICs are being started, but most of them are getting canceled. And the reason for that is, what’s the point of building an ASIC if it’s not going to be better than the one you can buy?
- NVIDIA's CEO
It is reported that firms like Google, Microsoft, Broadcom, OpenAI, and many others are developing their own custom chips to challenge NVIDIA's dominance and find an alternative to the monopoly in the markets created by Team Green's hardware. Since firms develop their custom AI chips, it would allow them to operate a more financially viable approach, since ASICs are tailored for a particular workload, providing far more efficient performance than clusters from NVIDIA.
Moreover, companies will have the option of having their own supply, which means they won't be influenced by market demand and experience delays, ultimately putting them ahead of the curve. However, Jensen feels that ASICs won't do much because developing them isn't hard; it is deploying them. Apart from the significant financial resources custom chip projects take, using them at such a large scale requires expertise that is only confined to NVIDIA for now, which is why the company has been the dominant one in providing AI hardware at such a large scale.
NVIDIA's CEO says that ASICs don't have the ability to replace the company's chips at all, and instead says that there's no point in developing them if NVIDIA offers better tech. His comments indicate that Team Green acknowledges the anticipated competition from custom chip solutions, but it doesn't bother the company at all.
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