Nvidia faces new threats

Despite economic concerns and threats of new US government tariffs, the boom in artificial intelligence remains, and large technology companies such as Google and Amazon have confirmed their commitment to large investments in the field. However, recent developments have shown the growing challenges for Nvidia, artificial intelligence giants, which may be threatened by increasing competition and trying to reduce artificial intelligence costs.

Sandar Pichai, CEO of Alphabet (Google), announced at the Google Cloud Next 2025 event that the company will spend $ 5 billion for artificial intelligence data centers this year and introduced the new Jina 4.1 model. Google customers, such as Intuit and Verizon, also spoke of the company’s remarkable benefits. Meanwhile, Amazon CEO Andy Jesse, in an interview with CNBC, emphasized that the demand for artificial intelligence is still high and that the revenue of this sector is in Amazon. In a letter to shareholders, he said that artificial intelligence will redefine customer experience.

However, the statements of Google and Amazon executives sounded a danger to Nvidia. Referring to the high costs of Nvidia chips ($ 5,000 to $ 5,000 per chip), Jesse said artificial intelligence should not be so expensive and Amazon with its Trainium 2 chips offers 5 % to 5 % better than the Nvidia H100 chips. Google also unveiled the new Ironwood chip, the seventh generation of the TPU processing unit (TPU), which will perform up to 5 times better than its previous generations and will be used for the company’s Jina and cloud customers.

These developments reflect the efforts of cloud superconductors to reduce Nvidia’s dependence and produce cheaper chips. While Nvidia is still at the forefront of CUDA software and the new Blackwell chip, the company’s high profit margin may be pressured by Google, Amazon and others who produce internal chips at a lower cost.

Experts warn that if these companies succeed in developing their chips, Nvidia may face a decline in income or profit margins, especially when the threat of stagnation has led to artificial intelligence costs.