Google is winning.Almost two years ago, Google unveiled Bard and it was a flop with shares falling 9% in a day. The company was on the defensive as the market panicked that its once-unpenetrable search moat was going to be unmoored by AI. The struggles continued and from January of this year to April, shares cracked, falling 31%. Then they got it right. The tide turned when they unveiled Veo 2, a video model that crushed competitors. Then Gemini launched with moderate fanfare but that was quickly improved with Gemini 2 and 2.5. Yesterday though, Gemini 3 was rolled out and it shot to the top of AI benchmarks. It's particularly good a reasoning and logic, something I've seen myself in early trials.I'm increasingly convinced that Google is going to win the AI race. They have the ecosystem and the data already. They know how to partner with advertisers to integrate commercial advertisements into products, they have YouTube.They also have the chips.What's less understood was that in 2014, Google decided that it didn't want to pay huge margins to Nvidia and began developing its own chipsets. They also wanted something more efficient. These are called Tensor Processing Units, or TPUs.Gemini was entirely trained with Google's own TPUs. They didn't use Nvidia at all.Here is the implemenation note:Now Google keeps this low-key because they're a hyperscaler and it sells GPU processing to others. It also has other commercial relationships with Nvidia and management also likely doesn't want to hurt Nvidia and pop the AI bubble.Also notable is that Midjourney also reportedly uses TPUs and that's the most-impressive image model. They cost 70% less than GPUs and are also cheaper (and likely superior) for inference. This gets back to my point that Nvidia's margins are the real bubble. We will get an earnings report from Nvidia today but it's backwards looking. Gemini 3 is the future and it shows you don't need Nvidia, or at least you won't in 3-5 years when other megacaps and companies design their own chips.In addition to Gemini, Google also unveiled Ironwood, which is its own new TPU so they're not standing still. It sounds impressive.Now you can crunch the numbers and model it all out or you can look to someone else who has already done that and has concluded that Google is the winner. Guess who had done that? A little company called Apple.Google's biggest rival in smartphones is reportedly going to overhaul Siri using Gemini after extensively surveying the field.Apple had previously mulled using other third-party models to handle the task. But after testing Gemini, OpenAI’s ChatGPT and Anthropic’s Claude, Apple zeroed in on Google earlier this year.Now I could go on about this -- and I did yesterday as well -- but as I write this, Google shares have just opened 5% higher. What else do you need to know? Google is going to win. The chart is doing this while other hyperscalers have seen +10% corrections. This article was written by Adam Button at investinglive.com.