Top hyperscalers and Nvidia clients have begun a prolonged divorce from the AI giant. According to industry reports, purchases of ASICs (application-specific integrated circuits) are projected to rise at a compound annual growth rate of 50%, with much of this growth coming from companies like Microsoft, Google, and Amazon's AWS, all seeking to start work on in-house ASIC development.
ASICs are one of the largest competition vectors to Nvidia's robust hardware and software stack for enterprise computing in the AI era. Nvidia's server hardware is prolific across the industry, with its Blackwell GPUs like the B200 quickly filling data centers worldwide. But with Nvidia's chips costing $70,000 to $80,000 each, and with full-server configs of the GB200 running between $1.8 million and $3 million, it is certainly no surprise that enterprise-scale clients are looking to reduce dependency on such a pricey partner.
