The internet loves drama, especially when two giants like Nvidia and Google are involved. Over the past week, social feeds have been buzzing with claims that Nvidia somehow “lost” $250 billion in market value because Google decided to develop its own AI chips. Headlines made it sound as if Google walked away from Nvidia, and the market punished them for it.
Here’s the thing: Nvidia has now publicly responded, and their message is pretty straightforward, this narrative is blown out of proportion.
Let’s break it down.
The Rumor That Exploded Online
It all started when reports surfaced about Google expanding its in-house semiconductor strategy. Because Google is one of Nvidia’s largest AI-chip customers, people immediately jumped to the conclusion that Nvidia’s business was at risk. Combine that with a temporary dip in Nvidia’s stock price, and suddenly you get a viral storyline claiming Nvidia “lost” $250B in value because of Google.
The number sounds dramatic, but it leaves out a lot of contexts.
Nvidia Steps in to Clarify
Nvidia rarely comments on market speculation, but this time they stepped in with a calm, measured response. Their stance: Google isn’t abandoning Nvidia. In fact, their collaboration is deeper than ever.
Nvidia highlighted two things:
- Google is still one of its largest cloud and AI customers.
Google uses Nvidia GPUs across its AI infrastructure and continues ordering them at scale. - Partnerships and custom chips can co-exist.
Google working on internal chips doesn’t mean they stop using Nvidia hardware. Most tech giants, Amazon, Meta, Microsoft, do the same. Nvidia still powers the majority of their AI workloads.
So, the idea that a single Google announcement wiped out $250B in real loss just doesn’t hold up.
Why Big Tech Builds Its Own Chips
Here’s what many people forget: every major tech player builds custom silicon for specific use cases.
Google has TPUs.
Amazon has Graviton and Trainium.
Meta is developing its own accelerators.
Yet all of them continue buying Nvidia hardware because:
- Nvidia’s GPUs remain the performance benchmark for training frontier AI models
- The CUDA software ecosystem is unmatched
- Developers still rely heavily on Nvidia-optimized tools
Custom chips are more about hedging risk and improving internal efficiency, not replacing Nvidia overnight.
Market Fluctuations Aren’t the Full Story
A temporary correction in Nvidia stock isn’t new. It happens to every trillion-dollar company. Market cap shifts are normal, and investors often overreact to news that sounds bigger than it is.
The more important question is: has Google stopped buying Nvidia chips?
Nvidia’s answer is a clear no.
What This Really Means for the AI Chip Landscape
The AI boom is way too big for any single chipmaker. Even if Google triples its custom chip output, demand for Nvidia GPUs is still skyrocketing across the industry. Model sizes are exploding, inference workloads are multiplying, and cloud companies can’t scale fast enough.
In short: the AI race has room for everyone.
Google building more of its own chips doesn’t shrink Nvidia’s market, it actually proves how massive and competitive this space has become.
The Bottom Line
Nvidia didn’t lose a $250B “Google deal.”
They didn’t lose Google as a customer.
And they certainly aren’t worried about being replaced overnight.
Their public response cuts through the noise: the partnership with Google is strong, demand remains high, and the storyline circulating online doesn’t match reality.
This is less about Nvidia losing something and more about people misunderstanding how Big Tech builds for the future.
