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On Tuesday, Tesla Inc. <\/strong>(NASDAQ:<\/a>TSLA<\/a>) CEO Elon Musk<\/strong> warned about an all-out AI hardware war after investor Gavin Baker<\/strong> outlined how Nvidia Corp.<\/strong>‘s (NASDAQ:<\/a>NVDA<\/a>) next-generation<\/a> Blackwell<\/strong> chips could reshape the economics of artificial intelligence (AI).<\/p>\n The comments surfaced during the Invest Like the Best podcast, where Baker described the escalating struggle between major AI infrastructure players.<\/p>\n Following the discussion, Musk took to X<\/strong> and said, “AI is the highest ELO battle ever. Speed of deployment of hardware, especially robotics, is the [linchpin].”<\/p>\n Don\u2019t Miss: If there was a new fund backed by Jeff Bezos offering a 7-9% target yield with monthly dividends would you invest in it<\/a>?<\/strong><\/p>\n The Elo rating system, created by Arpad Elo to measure player skill in zero-sum games such as chess, is now widely used across esports, traditional sports and even to rank large language models, with higher scores indicating stronger performance and points shifting based on match outcomes.<\/p>\n Baker said the battle has centered on Alphabet Inc.’s<\/strong> (NASDAQ:<\/a>GOOG<\/a>) (NASDAQ:<\/a>GOOGL<\/a>) Google<\/strong> and Nvidia, as both companies pushed competing AI chips.<\/p>\n He explained that Nvidia’s Blackwell platform faced major delays because the shift from Hopper <\/strong>chips required radical infrastructure changes, including higher power usage, liquid cooling, heavier data center racks and severe heat management challenges.<\/p>\n “It was by far the most complex product transition we’ve ever gone through in technology,” Baker said, adding that large-scale Blackwell deployments only began over the last few months.<\/p>\n Baker said Google gained a short-term edge by becoming the lowest-cost producer of AI “tokens,” allowing it to aggressively cut prices.<\/p>\n They’ve been s***ing the “economic oxygen out of the AI ecosystem,” Baker said, describing the strategy as rational but potentially temporary.<\/p>\n See Also: Missed Nvidia and Tesla? RAD Intel Could Be the Next AI Powerhouse \u2014 Invest Now at Just $0.85 a Share<\/a><\/strong><\/p>\n Baker said the first major AI models trained on Blackwell chips could arrive in early 2026 and said that Musk’s xAI<\/strong> could be the first to deploy them at scale<\/a>.<\/p>\n Story Continues <\/p>\n He added that newer GB300 <\/strong>systems are designed to be “drop-in compatible,” which could make Nvidia-powered AI systems the future lowest-cost option.<\/p>\n Baker said once Google loses its cost advantage, it may no longer be able to run AI at large losses, potentially reshaping competitive behavior across the entire industry.<\/p>\n Baker said that if Google is forced to change its strategy, it could face significant pressure as a higher-cost producer, warning that sustaining deeply negative margins would be painful and could begin to weigh on the company’s stock.<\/p>\n He added that such a shift would carry major implications for the broader economics of AI, and said the expected launch of Rubin<\/strong> chips could sharply widen the performance and cost gap versus TPUs and other custom AI chips.<\/p>\n Last month, it was reported that Meta Platforms, Inc.<\/strong> (NASDAQ:<\/a>META<\/a>) is in discussions to buy Google’s tensor processing units for its data centers as soon as 2026, with broader deployment planned for 2027.<\/p>\n Following this, Nvidia praised Google’s AI progress while highlighting its own dominance, saying in a social media post that it was “delighted” by Google’s advancements but still “a generation ahead” of the competition<\/a>.<\/p>\n Photo courtesy: Shutterstock<\/p>\n Trending Now:<\/strong><\/p>\n Building a resilient portfolio means thinking beyond a single asset or market trend. Economic cycles shift, sectors rise and fall, and no one investment performs well in every environment. That’s why many investors look to diversify with platforms that provide access to real estate, fixed-income opportunities, professional financial guidance, precious metals, and even self-directed retirement accounts. By spreading exposure across multiple asset classes, it becomes easier to manage risk, capture steady returns, and create long-term wealth that isn’t tied to the fortunes of just one company or industry.<\/p>\n Backed by Jeff Bezos, Arrived Homes makes real estate investing accessible with a low barrier to entry. Investors can buy fractional shares of single-family rentals and vacation homes starting with as little as $100<\/strong><\/a>. This allows everyday investors to diversify into real estate, collect rental income, and build long-term wealth without needing to manage properties directly.<\/p>\n For those seeking fixed-income style returns without Wall Street complexity, Worthy Property Bonds offers SEC-qualified, interest-bearing bonds starting at just $10<\/strong><\/a>. Investors earn a fixed 7% annual return, with funds deployed to small U.S. businesses. The bonds are fully liquid, meaning you can cash out anytime, making them attractive for conservative investors looking for steady, passive income.<\/p>\n Self-directed investors looking to take greater control of their retirement savings may consider IRA Financial. The platform enables you to use a self-directed IRA or Solo 401(k) to invest in alternative assets such as real estate, private equity, or even crypto<\/strong><\/a>. This flexibility empowers retirement savers to go beyond traditional stocks and bonds, building diversified portfolios that align with their long-term wealth strategies.<\/p>\n Moomoo isn’t just for trading \u2014 it’s also one of the most attractive places to park cash. New users can earn a promotional 8.1% APY on uninvested cash<\/strong><\/a>, combining a 3.85% base rate with a 4.25% booster once activated. On top of that, eligible new users can also score up to $1,000 in free Nvidia stock\u2014but the real draw here is the ability to earn bank-beating interest rates without having to move into riskier assets.<\/p>\n For investors concerned about inflation or seeking portfolio protection, American Hartford Gold provides a simple way to buy and hold physical gold and silver within an IRA or direct delivery<\/strong><\/a>. With a minimum investment of $10,000, the platform caters to those looking to preserve wealth through precious metals while maintaining the option to diversify retirement accounts. It’s a favored choice for conservative investors who want tangible assets that historically hold value during uncertain markets.<\/p>\n This article Elon Musk Calls AI ‘Highest ELO Battle Ever’ As Gavin Baker Warns Nvidia Blackwell Chips Could Shatter Google’s Cost Advantage<\/a> originally appeared on Benzinga.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. 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