GPUs vs. ASICs—the threat from within

Some of AMD’s and Nvidia’s biggest customers are building their own AIPs.

November 26, 2025

Jon Peddie

AMD and Nvidia continue supplying AI GPUs to hyperscalers such as Amazon, Google, Meta, Microsoft, and Tesla, though each is also developing its own chips. Google began designing TPUs over a decade ago and now produces millions annually, aiming for self-sufficiency in AI infrastructure. While ASICs like these offer efficiency for specific workloads, GPUs remain flexible and central to AI research. Most hyperscalers will keep their processors in-house, so AMD and Nvidia retain strong positions as the platforms driving innovation and next-generation AI model development worldwide. AMD and Nvidia have reported in their quarterly financial reports, various press releases, at

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GPUs vs. ASICs—the threat from within

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