The hottest new AI company is…Google?

In a significant shift in the rapidly evolving AI landscape, Google is making headlines with its latest model, Gemini 3. This development has caught the attention of major competitors, prompting remarks from industry leaders. Nvidia, a key player in AI hardware, expressed its support for Google's advancements, acknowledging their performance while highlighting its own offerings. On social media, Nvidia stated, "We’re delighted by Google’s success — they’ve made great advances in AI and we continue to supply to Google," while also emphasizing the advantages of their products over application-specific integrated circuits (ASICs) like those developed by Google. OpenAI's CEO, Sam Altman, also chimed in with praise, calling Gemini 3 a remarkable model. His sentiments were echoed by Salesforce CEO Marc Benioff, who declared that after experiencing Google’s new model, he wouldn’t return to ChatGPT. He described the leap in capabilities as astonishing, mentioning improvements in reasoning, speed, and multimedia processing. As Google's Gemini 3 garners attention, Meta is reportedly exploring a potential acquisition of Google's Tensor chips, illustrating the competitive dynamics at play. In addition, Anthropic, another AI firm, has announced plans to broaden its integration of Google’s technology. Following the launch of Gemini 3, Google's stock saw a nearly 8% increase, while Nvidia's shares dipped slightly. The stakes are high in this competitive race, as the outcomes could reshape not just the tech industry but also the investment landscape affecting countless individuals. Nvidia's public comments suggest a lack of concern over Google's advances, largely due to the distinct nature of their chip offerings. Despite this, experts like Angelo Zino from CFRA acknowledge Google's current lead in AI technology, albeit with caution as other competitors may soon emerge. Historically, Google has been a significant player in AI, with applications like Search and Translate utilizing AI for years. However, the company faced challenges after OpenAI's ChatGPT gained rapid popularity in 2022, prompting an internal response dubbed "code red". Currently, ChatGPT boasts around 800 million weekly active users, while Google's Gemini app stands at 650 million monthly active users. Gemini 3, launched on November 18, has quickly ascended to the top of performance benchmarks for tasks such as text generation and image processing. In its initial 24 hours, over one million users engaged with the new model through various applications. However, experts note that different AI models serve varied purposes, and while Gemini 3 excels in certain areas, others still outperform it in specific benchmarks. Google's Tensor chips are specialized for particular tasks, contrasting with Nvidia's versatile graphics processing units (GPUs), which dominate the market. Nvidia continues to report robust growth, with a 62% increase in sales year-over-year, while Google’s chips have a more narrow focus. Nevertheless, with increasing competition and a growing interest in ASICs, the dynamics of the AI chip market are shifting, and Google is positioning itself as a formidable contender. Industry analysts suggest that while Google may not dethrone Nvidia, its presence signifies a broader evolution in the AI ecosystem.