""If companies want to diversify away from Nvidia, TPUs are a good way to do it, and that means there's a lot of reason to be optimistic," said Gil Luria, head of technology research at DA Davidson. "The chip business could ultimately be worth more than Google Cloud. But even if it never sells a chip externally, the better chip means a better, more efficient cloud.""
""As a company, you're competing against teams. And there just aren't that many teams in the world who are extraordinary at building these incredibly complicated things.""
Investors increasingly view Alphabet's tensor processing unit (TPU) chips as a potential major revenue driver. Strong TPU performance contributed to a 30% fourth-quarter stock rally and supports cloud-computing growth through greater efficiency. Optimism centers on the possibility of selling TPUs to third-party customers, which could create a substantial new revenue stream and capture significant AI market share. Analysts estimate TPUs could account for about 20% of the AI market, valuing the opportunity near $900 billion. Alphabet announced a large chip supply deal with Anthropic and reportedly held talks with Meta for TPU access. Nvidia emphasizes its team-based competitive advantage.
Read at Fortune
Unable to calculate read time
Collection
[
|
...
]