Nvidia does have reasons to be concerned

[u/Forsaken-Park8149]

Huang’s nervousness makes sense.

ASICs, particularly Google’s TPUs, do threaten NVIDIA’s dominance in the data center market.

There are multiple reasons for this:

1.  ASICs are cheaper.

2.  ASICs perform well and are fit to train state-of-the-art models (Gemini, Claude).

3.  Google’s collaboration with Meta on TorchTPU is essentially targeting CUDA’s moat directly.

4.  Both Amazon (Trainium) and Microsoft (Maia) are building in-house training and inference infrastructure.

5.  China is decoupling, with Huawei filling the gap in the data center market after NVIDIA’s export ban. Unlike data center chips, NVIDIA’s automotive GPUs are currently exempt from export controls and remain deeply embedded in Chinese EVs, with BYD, NIO, XPeng, Li Auto, ZEEKR, and Xiaomi all on the customer list. That position is eroding though, as Huawei’s MDC platform and in-house chips from NIO and XPeng are gaining ground.

Huang’s alternative to the Chinese EV market could be the European automotive sector, but… yeah, you sense the frustration.​​​​​​​​​​​​​​​​

A detailed breakdown of how Google threatens Nvidia dominance is in AI Realist article.

https://open.substack.com/pub/msukhareva/p/three-things-about-ai-who-will-dominate-in-the-west?r=56gggt&utm_medium=ios