"Taiwan-based market watcher TrendForce estimates the world's eight biggest cloud providers - Google, Amazon, Meta, Microsoft, Oracle, Tencent, Alibaba, and Baidu - will lay out upwards of $710 billion in capex during 2026, about 61 percent more than last year. According to figures disclosed earlier, the first four alone account for about $635 billion of that outlay, showing just how much the giant players dominate the market."
"Google remains the only cloud biz that is adding more ASIC-based servers than GPU-based ones, according to TrendForce. It estimates Google's Tensor Processing Units (TPUs) will feature in about 78 percent of AI servers shipped to Google datacenters this year. Amazon's build-out is expected to comprise 60 percent GPU servers, with systems based on its Trainium3 silicon set to ramp up later in the year."
"All of this spend - which adds up to more than the entire gross domestic product (GDP) of Ireland last year - is going on datacenters and the kit to fill them, including high-performance servers typically packed with GPU accelerators from Nvidia or AMD. However, many increasingly invest in other accelerators such as custom-built application-specific integrated circuits (ASICs)."
The world's eight largest cloud operators—Google, Amazon, Meta, Microsoft, Oracle, Tencent, Alibaba, and Baidu—plan to invest over $710 billion in capital expenditure during 2026, representing a 61 percent increase from the previous year. This massive spending targets datacenters and high-performance servers equipped with GPU accelerators from Nvidia or AMD, though many providers increasingly deploy custom ASICs for improved performance and energy efficiency. Google uniquely prioritizes custom TPUs, which will comprise 78 percent of its AI servers, while Amazon, Meta, Microsoft, and Oracle predominantly rely on GPU-based systems. This unprecedented infrastructure expansion is creating significant memory shortages and rising chip prices across the industry.
#cloud-infrastructure-investment #ai-server-demand #memory-shortage #gpu-and-asic-accelerators #datacenter-expansion
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