Last year, while Nvidia sold 2.5 million chips, Google spent between $2 billion and $3 billion to produce about a million of its own AI chips, according to Pierre Ferragu, an analyst at New Street Research. Amazon spent $200 million on 100,000 chips, and Microsoft has begun testing its first AI chip. The move by these tech giants to produce their own chips could significantly impact Nvidia's dominant market position.
Key takeaways:
- Amazon, Google, Meta, and Microsoft are working to reduce their dependence on Nvidia by developing their own specialized computer chips for artificial intelligence.
- These tech giants have become heavily reliant on Nvidia's chips for building AI systems, but Nvidia has struggled to meet the high demand.
- By creating their own AI chips, these companies aim to control their own destiny, reduce costs, eliminate chip shortages, and potentially sell access to their chips to businesses using their cloud services.
- Last year, Google spent between $2 billion and $3 billion to build about a million of its own AI chips, while Amazon spent $200 million on 100,000 chips, and Microsoft has begun testing its first AI chip.