Google's AI chip business is getting harder for Nvidia to ignore
A blockbuster deal with Oracle and new numbers from Anthropic point to a TPU-shaped headache for Nvidia.
Google's AI chip business is posing a growing challenge to Nvidia's dominance, as the search giant expands its Tensor Processing Units (TPUs) into the hyperscaler market. Following a strategic deal with Oracle, Google's TPUs will soon be accessible to Oracle cloud customers, marking the first time the company's proprietary chips have been offered on multiple platforms.
This move comes after earlier skepticism from Nvidia CEO Jensen Huang, who once downplayed the threat of other companies entering the AI chip market, including Google.
While Nvidia remains the market leader in chip business, Google's TPU business may soon experience significant growth. Analysts project that Google's TPU revenue could reach as high as $100 billion by 2028, accounting for 34% of Google Cloud's projected 2028 revenue. This potential growth is driven by the increasing trend among companies to adopt a multichip strategy, reducing their reliance on a single supplier like Nvidia.
As a result, Google's AI chips, initially created for search and other products, could be on the brink of taking off.
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