New analysis from Omdia highlights the speedy development in demand for Google’s Tensor Processing Unit (TPU) AI chips, a pattern that could be robust sufficient to start out chipping away at NVIDIA’s market dominance in GPUs.
Third quarter outcomes from Broadcom, whose Semiconductor Options division acts as a customized chip outsourcing associate for Google, Meta, and a number of other different AI gamers, give our analysts some perception into buying tendencies and data that’s usually saved underneath wraps – what number of customized processors is Google shopping for?
Broadcom’s CEO Hock Tan has repeatedly revised up his goal for AI semiconductor income, aiming for $12 billion for this yr. Based mostly on this, it’s estimated that Google’s TPUs might account for someplace between $6 billion – near Omdia’s present estimates – and $9 billion, relying on the breakdown between compute and networking units.
This determine features a substantial variety of Meta’s MTIA chips, with a venture for a mysterious third consumer anticipated to ramp up in 2025.
Alexander Harrowell, principal analyst at Omdia famous: “Regardless that there’s some uncertainty within the actual ratio between compute and networking units, shipments of TPUs, even on the decrease $6bn estimate, are rising at a tempo quick sufficient to take share from NVIDIA for the primary time.
“It’s value noting that Google’s Cloud Platform enterprise continues to develop as a share of Google’s income whereas bettering profitability. This might point out that TPU-accelerated occasion sorts or AI merchandise operating on TPUs are driving the expansion at Google Cloud, particularly as accelerator occasion sorts are high-margin merchandise.”
