"Andy Jassy, the CEO of Amazon, laid down the gauntlet to Nvidia in his annual letter to shareholders earlier this month. 'Virtually all AI thus far has been done on Nvidia chips, but a new shift has started,' Jassy wrote, adding that it's 'quite possible' that Amazon could start selling its chips directly to customers."
"Google CEO Sundar Pichai publicly said for the first time that the company plans to deliver TPU chips to a 'select group of customers' in their own data centers this year, but said the 'vast majority' of revenues from those sales won't be realized until 2027."
"Morgan Stanley said in a December research note that selling 500,000 TPU chips could add roughly $13 billion in revenue to Google's balance sheet in 2027."
Nvidia's leadership in AI chips is being challenged by Google and Amazon, who are planning to sell their custom chips directly to customers. Amazon's CEO indicated a timeline for offering Trainium chips beyond cloud services, while Google's CEO announced plans to deliver TPU chips to select customers this year. Both companies see significant revenue potential in their semiconductor businesses, with projections suggesting substantial financial gains by 2027, indicating a shift in the competitive landscape of AI hardware.
Read at www.businessinsider.com
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