Chip race: Microsoft, Meta, Google, and Nvidia battle it out for AI chip supremacy

Riding a valuation pumped up by generative AI and its chips that power many of the tools, Nvidia’s market cap has passed not only Apple but now Microsoft, too, at more than $3.3 trillion, as reported by Bloomberg.

The markets are still open, but the rise has been fast — Nvidia shares are up 160 percent in 2024, passing $2 trillion in February.

The Ultra Accelerator Link (UALink) Promoter Group, will work to create an open standard to help AI accelerators “communicate more effectively” within data centers and boost performance. Other members include AMD, HP, Broadcom, and Cisco — but not Nvidia, which has AI chip-linking tech of its own.

Sales jumped 262 percent in Q1 2025 to hit a record $26B in revenue, of which nearly three-quarters ($19.4B) was data center compute — especially its Hopper GPUs for training LLMs and generative AI apps, says Nvidia. Gaming only accounted for $2.6 billion revenue this quarter.

Nvidia’s expecting record revenue again next quarter — $28B. Shovels in a gold rush, people.

CEO Sundar Pichai just announced new Trillium chips, coming later this year, that are 4.7 times faster than their predecessors, as Google competes with everyone else building new AI chips. Pichai also highlighted Axion, Google’s first ARM-based CPU, which the company announced last month.

Google will also be “one of the first” cloud companies to offer Nvidia’s Blackwell GPU starting in 2025.

Correction: Axion was announced last month, not last year. Also, corrected the spelling of Axion.

Apple — like Google, Meta, Microsoft, OpenAI and everyone else this side of Nvidia — is reportedly working on custom server hardware to power AI models as it prepares to introduce a slew of new features.

Over the past decade, Apple has emerged as a leading player designing chips for iPhones, iPads, Apple Watch and Mac computers. The server project, which is internally code-named Project ACDC—for Apple Chips in Data Center—will bring this talent to bear for the company’s servers, according to people familiar with the matter.

Apple watcher Mark Gurman followed up saying a similar-sounding project was canceled and it doesn’t make sense anyway: it would be too expensive, lack differentiation, and Apple prefers on-device AI.

Update: Added Gurman’s rebuttal.

AMD also says an AI PC refresh cycle will help PCs return to growth in 2024, and that 150 software vendors will be developing for AMD AI PCs by year’s end. The company’s top priority is ramping AI data center GPUs, though, which are “tight on supply.” New AI chips are coming “later this year into 2025,” too.

OpenAI’s Batch API now lets users upload a file of bulk queries to the AI model, like categorizing data or tagging images, with the understanding that they won’t need immediate attention. Promising results within 24 hours lets them run when there is unused compute power, and keeps those pricey GPUs humming around the clock.

Intel first introduced its Gaudi 3 AI accelerator last year, but now the company has revealed more details on performance. When compared to the H100 GPU, Intel says its Gaudi 3 accelerator can deliver “50% faster time-to-train on average across the Llama2 models” with better efficiency.

The company also says the Gaudi 3 AI Accelerator will be a “fraction of the cost” of Nvidia’s pricey H100. It will become available to companies like Dell, HPE, and Lenovo in the second quarter of this year.

Reuters reports the list could strengthen the Commerce Department’s existing restrictions on US tech shipments to Chinese chip factories. The US government has voiced national security concerns about letting China access US technology to grow its own capabilities.

US companies have complained it’s difficult to know which Chinese factories produce advance chips and are subject to the restrictions, Reuters says.

CNN gained entry into the training facility where TSMC teaches engineers to design and operate the machines that build semiconductors. The hope is to train engineers to “seed” factories it’s building in the US, Japan, and Germany.

TSMC told CNN that it needs “to hire thousands more” employees to staff facilities around the world as demand for advanced chips grows.

That’s what this NYT report says a16z and Saudi Arabia’s Public Investment Fund are considering, which may explain the rumors that Elon Musk (who denied them), Sam Altman, and others looking to the Middle East to fund their AI dreams.

It also recalls last fall’s news that the US government added an “additional licensing requirement” for Nvidia and AMD AI shipments to unspecified Middle Eastern countries.

JEDEC Solid State Technology Association has released details about its new standard, which it says is better positioned to handle the demands of gaming, networking, and AI.

JESD239 GDDR7 is the first JEDEC standard DRAM to use the Pulse Amplitude Modulation (PAM) interface for high frequency operations. Its PAM3 interface improves the signal to noise ratio (SNR) for high frequency operation while enhancing energy efficiency. It also says GDDR7 has double the bandwidth over GDDR6, up to 192 GB/s per device, and double the number of channels.

We don’t expect to see GDDR7 out in the world until Nvidia and AMD release next-gen GPUs, which could come before the end of 2024 but is a long way from being confirmed.

Intel vice president David Feng said during Mobile World Congress that as part of the push to put AI into everything it builds, it will produce 40 million CPUs for AI PCs this year and 60 million in 2025, reports Nikkei Asia.

The “AI PC” concept includes Microsoft’s new CoPilot button plus Intel Core Ultra processors with built-in GPUs and neural processing units for AI models, which are now available as part of its vPro platform for business laptops.

With over 600 statements of interest received, Commerce Secretary Gina Raimondo acknowledged today that the amount requested is more than twice the $28 billion the government has budgeted to invest.

We have decided to prioritize projects that will be operational by 2030. There are worthy proposals with plans to come online after 2030 that we say no to in order to maximize our impact in this decade...We anticipate that our investments in leading-edge logic chip manufacturing will put us on track to produce roughly 20% of the world’s leading-edge logic chips by 2030, up from the zero percent we produce today.

The CHIPS Act originally had $52 billion in subsidies to boost US semiconductor manufacturing, but it’s not nearly enough to catch up by itself — industry leader Taiwan Semiconductor Manufacturing Company (TSMC) earmarked $44 billion in 2022 just to expand its existing capacity.