"that some tech titans are looking to diversify their AI chip supply beyond Meta Platforms ( NASDAQ:META) caused some ripples in the tech scene when it was reported that Mark Zuckerberg's tech titan is in discussions with Alphabet ( NASDAQ:GOOG) to invest billions of dollars in Google TPUs (Tensor Processing Units) for its data centers by 2027. Undoubtedly, it should come as no surprise Nvidia (NASDAQ:NVDA) and Advanced Micro Devices ( NASDAQ:AMD)."
"Given the hoarding action we've seen across the tech scene with DRAMs (Dynamic Random Access Memory), perhaps it's not too far-fetched to learn of a firm backing up the truck on as much AI hardware as possible, including from other sources beyond the great Nvidia. Google-Meta talks are not good news for Nvidia. But are the fears overblown? Although I understand why Nvidia shareholders would be concerned over a potential Meta-Google deal,"
Some tech firms are exploring diversification of AI chip supply by investing in Google TPUs for data centers through 2027. Large investments aim to reduce reliance on Nvidia GPUs and hedge against supply shortages as demand surges. Industry players also pursue custom ASIC efforts, including Meta's MTAI and several 'Mag Seven' companies. DRAM hoarding behavior indicates firms may stockpile various AI hardware components. Transitioning from GPUs to ASICs is expected to take years rather than months. Nvidia currently remains the dominant AI chip provider and is likely to retain a leading position in the near term.
Read at 24/7 Wall St.
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