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Nvidia Faces New Competition in AI Chip Market
Nvidia, currently holding a commanding 85-90% share of the $44.9 billion global AI chip market, is facing increased competition from Qualcomm and Alphabet. Qualcomm unveiled its AI200 and AI250 chips, which aim to launch in 2026 and 2027 respectively, targeting the data center space. Meanwhile, Alphabet introduced its Ironwood Tensor Processing Unit (TPU), designed for training AI models efficiently.
Qualcomm’s AI200 chip promises to be 35% more energy-efficient than its Nvidia counterparts, potentially disrupting Nvidia’s near-monopoly. As AI infrastructure spending is projected to exceed $2.8 trillion by 2029, the increasing efficiency and optimized costs of these new chips may pose significant challenges for Nvidia. Both Qualcomm and Alphabet are working to carve out substantial market share in the high and low ends of AI hardware.
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