Amazon, Alphabet, and Microsoft Are All Racing to Design Their Own AI Chips. Here's What It Means for Nvidia.

Amazon, Alphabet, and Microsoft are scaling custom AI chips to reduce dependence on Nvidia, with the four major cloud giants planning to spend ~$725 billion on capex in 2026. While this poses a long-term risk to Nvidia's market share and pricing power, Nvidia's revenue continues to surge (85% YoY growth) as overall AI spending expands rapidly across startups, enterprises, and governments that don't design their own chips.