AI Computing Landscape: Key Developments
AMD is intensifying its competition with Nvidia in the GPU market amid growing AI infrastructure investments. In 2025, hyperscalers set record capital expenditures, primarily for data centers, with projections for even higher spending in 2026. AMD forecasts a 60% compound annual growth rate for its data center revenue over the next five years as it aims to capture market share from Nvidia’s high-end chips.
Alphabet, in collaboration with Broadcom, is potentially launching its Tensor Processing Units (TPUs) to external clients, marking a shift in its business model. This strategy could align with Meta Platforms’ interest in acquiring TPUs, suggesting a significant new revenue stream for Alphabet. Meanwhile, Taiwan Semiconductor Manufacturing, the world’s largest chip maker, produces the majority of high-end chips for these companies, positioning itself to benefit from the ongoing escalation in AI computing power.
