The Next AI Battle: Custom ASICs vs. Nvidia GPUs

Michael Esther
06-20

Here is why $Meta Platforms, Inc.(META)$ and $Alphabet(GOOG)$ are working with $Broadcom(AVGO)$ to make custom AI ASICs.

$NVIDIA(NVDA)$ GPUs are powerful and flexible.

Built, they contain parts that AI models do not use, making them highly expensive and inefficient when used in certain ways.

ASICs are custom chips designed to do only one specific job, like running a specific type of AI model extremely fast.

An ASIC is like a specialized tool built for a specific task, while a GPU is like a multi-tool pocketknife.

The ASIC is much more energy-efficient and cost-effective once a company is running millions of specific tasks a day.

Simply put, NVDA GPUs are good at running all AI, while GOOGL TPUs are PERFECT for a very specific AI use case, such as Gemini, or Agentic AI.

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