New research from Omdia 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.
Third quarter 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 $12 billion for this year. Based on this, it is estimated that Google’s TPUs could account for somewhere between $6 billion – close to Omdia’s existing estimates – and $9 billion, 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.
