The artificial intelligence industry is witnessing a monumental power shift. Google has officially launched its Gemini 3 model, an event that has dramatically altered the competitive landscape and sent shockwaves through the entire tech sector.
From Underdog to Dominator: The Gemini Effect
With the introduction of Gemini 3, Google has successfully transformed its position from that of an AI underdog to a dominant industry force. This aggressive push is forcing major players to reassess their strategies. The launch, reported on November 28, 2025, has created ripples that extend from hardware chips to consumer applications, threatening established ecosystems.
How Rivals are Responding to the Shockwave
The announcement has triggered immediate and significant reactions from Google's key competitors. The new AI model directly challenges Nvidia's long-standing GPU dominance, posing a serious threat to its hardware supremacy. For OpenAI, the creator of ChatGPT, Gemini 3's capabilities question the future of its own AI ecosystem.
Elon Musk, never one to stay silent, has already reacted. His company, xAI, responded with a tease for its own next-generation model, provocatively named "Grok 4.20". The competitive tension is palpable, signalling the start of a new phase in AI development.
Perhaps one of the most telling reactions came from Salesforce CEO Marc Benioff. His viral, unfiltered response—a simple "Holy sh**"—perfectly encapsulated the astonishment felt across the industry upon seeing Gemini 3's demonstrated power.
The Future of the AI Trade and an Escalating Arms Race
Financial and technology analysts are now declaring that "the AI trade is splintering." This means investment and development focus is no longer concentrated on a single path or company but is rapidly diversifying in response to Google's move. The central question now is whether Google has just triggered a full-scale AI arms race.
If Google maintains its current pace of innovation, the entire AI landscape is poised for a rewrite. The implications will be vast, affecting everything from the design of semiconductor chips to cloud computing infrastructure and the consumer apps used by millions daily. The industry is advised to buckle up for a period of intense competition and rapid change.
