Nvidia hits record sales as Google and Amazon ramp up custom AI chip competition

Nvidia has stunned Wall Street with another quarter of soaring revenue, driven by overwhelming demand for GPUs that dominate AI training and inference.

However, the celebration comes with a warning sign: Google and Amazon are rapidly expanding their custom-chip programs, introducing alternatives designed to reduce long-term dependence on Nvidia hardware.

While Nvidia continues to ship millions of Blackwell-generation GPUs, Google is scaling its TPU lineup and Amazon is pushing Trainium and Inferentia across its cloud.

Industry analysts noted these custom chips, optimised, cheaper and tailored for hyperscalers, could shift the balance of power if the companies keep growing at their current pace.

The competitive landscape is widening even further as Qualcomm, Apple, and others push on-device AI chips, while reprogrammable FPGAs gain traction in networking and signal-processing markets.

Experts said that this diverse ecosystem means the next wave of AI hardware won’t look like the GPU-only era.

Still, Nvidia remains firmly ahead today, and its record sales underline its unmatched lead in cutting-edge AI workloads.

But as Google and Amazon double down on custom AI chip strategies, the question is no longer who dominates now; it’s how long Nvidia can keep its grip on the future.