Google has shaken up the artificial intelligence landscape once again. Its new Gemini 3 model and homegrown Tensor chips have drawn praise from industry giants and rattled market leaders, showing that the AI race is far from over.

The model’s arrival was met with rare applause from rivals. Nvidia (NASDAQ: NVDA) congratulated Google in a post on X, calling its progress impressive while reminding investors that its GPUs still offer “greater performance, versatility, and fungibility than ASICs.” OpenAI CEO Sam Altman also chimed in, calling Gemini 3 “a great model.”

The excitement followed Salesforce CEO Marc Benioff’s viral post claiming Gemini 3 is so advanced that “it feels like the world just changed again.” And it might have. Shares of Alphabet (NASDAQ: GOOGL) jumped nearly 8% last week, while Nvidia slipped more than 2%, showing that investors are taking Google’s rise seriously.

Meta is reportedly in talks with Google to purchase its Tensor Processing Units (TPUs) for future AI workloads, and Anthropic announced plans to deepen its use of Google Cloud and chip technology. Analysts say Google’s resurgence represents a turning point.

Despite being a longtime AI powerhouse, Google was caught off guard by OpenAI’s ChatGPT explosion in 2022. The company’s internal “code red” scramble eventually produced Gemini, which now has 650 million monthly users compared to ChatGPT’s 800 million weekly users.

Since its November 18 debut, Gemini 3 has topped benchmarks for text generation, image processing, and multimodal tasks, outperforming ChatGPT, xAI’s Grok, and Anthropic’s Claude. More than one million users tested it within 24 hours, proving Google’s renewed global reach.

Google’s custom Tensor chips, designed for specific AI tasks, differ from Nvidia’s GPUs, which dominate general-purpose AI workloads. Nvidia still controls most of the market, posting 62% revenue growth and 65% profit gains year-over-year in its latest quarter.

Chips like Google’s will not replace Nvidia soon, but their rise shows that companies want to cut their reliance on it. Even Google continues to use Nvidia’s GPUs alongside Tensor chips to train large models.

Stocks to Watch:

  • Alphabet (NASDAQ: GOOGL) – riding Gemini 3 momentum and growing chip ambitions
  • Nvidia (NASDAQ: NVDA) – still the core engine of AI computing
  • AMD (NASDAQ: AMD) – expanding share in AI chips and accelerators
  • Meta (NASDAQ: META) – exploring Google’s Tensor technology for its next models

Google may not have started the AI race, but with Gemini 3 and Tensor, it is running at full speed and everyone is watching.

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