NVIDIA CEO Jensen Huang: Most Custom ASIC Projects Likely to Be Canceled

CEO Jensen Huang of NVIDIA has downplayed concerns regarding the potential replacement of NVIDIA chips with Application-Specific Integrated Circuits (ASICs).He suggests that the majority of these custom chip initiatives are likely to falter.

NVIDIA Confident Amid ASIC Development from Major Tech Giants

NVIDIA maintains a strong position in today’s AI landscape, emphasizing that its technology is crucial for the industry’s growth. While several major technology enterprises like Google and Microsoft are actively pursuing the creation of their own ASICs—such as Microsoft’s Maia or Amazon’s Graviton chips—Huang’s statements during the GTC Paris 2025 conference reveal a lack of apprehension on NVIDIA’s part. He believes these efforts will have minimal impact on NVIDIA’s influential standing in the semiconductor market.

“First of all, a lot of ASICs are being started, but most of them are getting canceled. And the reason for that is, what’s the point of building an ASIC if it’s not going to be better than the one you can buy?”

– NVIDIA’s CEO

Tech giants including Google, Microsoft, Broadcom, and OpenAI are in the race to develop custom chips to counter NVIDIA’s dominance and seek alternatives to the established monopoly associated with NVIDIA’s offerings. The allure of ASICs lies in their optimization for specific workloads, which can lead to greater performance efficiencies compared to traditional clusters powered by NVIDIA technology.

Microsoft's May 100 AI chip — Microsoft’s May 100 AI chip

Additionally, by developing their own supply chains, these companies aim to mitigate risks associated with market fluctuations and supply delays, thus enhancing their competitive edge. Nonetheless, Huang asserts that the challenges lie not in the development of ASICs but in their effective deployment. He notes that the extensive resources and expertise required to implement these custom chips on a large scale are currently a unique advantage held by NVIDIA.

According to Huang, the prospect of ASICs replacing NVIDIA’s technology is remote. He argues that without the ability to surpass NVIDIA’s offerings, the development of new chips is futile. His perspective suggests that while NVIDIA recognizes the emerging competition from custom solutions, the company remains unfazed by these challenges.