Nvidia’s Big Tech Rivals Put Their Own A.I. Chips on the Table

Posted under: AI technologies
Date: 2024-01-30
Nvidia’s Big Tech Rivals Put Their Own A.I. Chips on the Table

Major tech companies like Amazon, Google, Meta, and Microsoft are investing heavily in developing their own artificial intelligence (A.I.) chips to reduce dependency on Nvidia, a dominant player in the A.I. chip market. While Nvidia holds over 70% of A.I. chip sales, the tech giants are building chips to control costs, eliminate shortages, and potentially offer them as a service to businesses using their cloud platforms. In 2023, Google spent $2-3 billion, Amazon invested $200 million, and Microsoft started testing its A.I. chip. This shift is driven by the boom in generative A.I. and the need for specialized chips, highlighting tensions between Nvidia and its high-profile customers. The A.I. chip market is expected to exceed $140 billion by 2027.But none of these companies will overtake Nvidia anytime soon. Its chips may be pricey, but are among the fastest on the market. And the company will continue to improve their speed.

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