Amazon, Google and Microsoft expand in-house artificial intelligence chips, affecting Nvidia
Cloud companies including Amazon, Google and Microsoft are significantly expanding their in-house artificial intelligence chips. 4Major cloud providers’ 2026annual capital expenditure is reported to be 7,250billion dollars, while Nvidia’s revenue increased 85% year on year.
6Month 7day reports say that Amazon, Google (Alphabet) and Microsoft are expanding development of their in-house artificial intelligence chips. These moves are described as an attempt to change cloud providers’ chip supply structure. The same report said that 4major cloud companies plan 2026to invest approximately 7,250billion dollars in capital expenditure.
The three companies are moving to increase the scale at which they design and mass-produce their own chips. In-house-designed chips directly affect the performance and cost structure of cloud services. The companies are reportedly increasing investment and hiring to secure design and manufacturing capabilities.
Meanwhile, Nvidia’s revenue increased 85% year on year. According to reports, demand related to Nvidia’s data centers continues to show strong momentum. Artificial intelligence-related spending is reportedly continuing across various customer groups.
Artificial intelligence spending is expanding to startups, corporations, governments, and others. Many of these users do not design their own chips. As a result, it is noted that chip design is becoming more diversified while existing demand continues to remain in place.
Specific figures are expected to emerge in future announcements of quarterly results and investment plans by related companies. Company-by-company results, shipment volumes, and the status of capital expenditure execution are being presented as key information for future assessments. Investors need to check the figures announced.
Sources: The Motley Fool,Yahoo Finance
Bullstory synthesized this report from the linked sources. AI may have assisted the writing process. Check the original reports for factual confirmation.