LONDON, Dec. 18,
2024 /PRNewswire/ -- Omdia's latest research
highlights the rapid growth in demand for Google's Tensor
Processing Unit (TPU) AI chips, a trend that may be strong enough
to start chipping away at NVIDIA's market dominance in GPUs. 3Q
results from Broadcom, whose Semiconductor Solutions division acts
as a custom chip outsourcing partner for Google, Meta, and several
other AI players, give our analysts some insight into purchasing
trends and information that is typically kept under wraps – how
many custom processors is Google buying?
Broadcom's CEO Hock Tan has repeatedly revised up his target for
AI semiconductor revenue, aiming for $12bn for this year. Based on this, it is
estimated that Google's TPUs could account for somewhere between
$6bn – close to Omdia's existing
estimates - and $9bn, depending on
the breakdown between compute and networking devices. This figure
includes a substantial number of Meta's MTIA chips, with a project
for a mysterious third client expected to ramp up in 2025.
Alexander Harrowell, Principal Analyst at Omdia noted:
"Even though there is some uncertainty in the exact ratio between
compute and networking devices, shipments of TPUs, even at the
lower $6bn estimate, are growing at a
pace fast enough to take share from NVIDIA for the first time. It's
worth noting that Google's Cloud Platform business continues to
grow as a share of Google's revenue while improving profitability.
This could indicate that TPU-accelerated instance types or AI
products running on TPUs are driving the growth at Google Cloud,
especially as accelerator instance types are high-margin
products."
ABOUT OMDIA
Omdia, part of Informa TechTarget, Inc.
(Nasdaq: TTGT), is a technology research and advisory group. Our
deep knowledge of tech markets combined with our actionable
insights empower organizations to make smart growth decisions.
Contact
Fasiha Khan:
fasiha.khan@omdia.com
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SOURCE Omdia
