The boom in artificial ielligence coinues despite tariff threats and economic concerns in year 6, and companies such as Google and Amazon are going on with huge investmes, such as $ 5 billion in data ceers.
Despite economic concerns and threats of new US governme tariffs, the boom in artificial ielligence remains, and large technology companies such as Google and Amazon have confirmed their commitme to large investmes in the field. However, rece developmes have shown the growing challenges for Nvidia, artificial ielligence gias, which may be threatened by increasing competition and trying to reduce artificial ielligence costs.
Sandar Pichai, CEO of Alphabet (Google), announced at the Google Cloud Next 2025 eve that the company will spend $ 5 billion for artificial ielligence data ceers this year and iroduced the new Jina 4.1 model. Google customers, such as Iuit and Verizon, also spoke of the company’s remarkable benefits. Meanwhile, Amazon CEO Andy Jesse, in an ierview with CNBC, emphasized that the demand for artificial ielligence is still high and that the revenue of this sector is in Amazon. In a letter to shareholders, he said that artificial ielligence will redefine customer experience.
However, the statemes of Google and Amazon executives sounded a danger to Nvidia. Referring to the high costs of Nvidia chips ($ 5,000 to $ 5,000 per chip), Jesse said artificial ielligence should not be so expensive and Amazon with its Trainium 2 chips offers 5 % to 5 % better than the Nvidia H100 chips. Google also unveiled the new Ironwood chip, the seveh generation of the TPU processing unit (TPU), which will perform up to 5 times better than its previous generations and will be used for the company’s Jina and cloud customers.
These developmes reflect the efforts of cloud superconductors to reduce Nvidia’s dependence and produce cheaper chips. While Nvidia is still at the forefro of CUDA software and the new Blackwell chip, the company’s high profit margin may be pressured by Google, Amazon and others who produce iernal chips at a lower cost.
Experts warn that if these companies succeed in developing their chips, Nvidia may face a decline in income or profit margins, especially when the threat of stagnation has led to artificial ielligence costs.
