CNBC Television
Google opens access to its most powerful AI chip
11/6/2025, 7:17:52 PM
Economic Summary
- Alphabet (GOOGL) is commercializing its Ironwood TPU after a decade of development; these lower-cost, in-house chips are helping Google win major cloud AI contracts (OpenAI, Meta, Anthropic) and are a strategic reason for a large increase in capex focused on chips.
- Chips are becoming the deciding factor in the cloud wars: Amazon (AMZN) and Microsoft (MSFT) also deploy in-house AI silicon, and OpenAI is paying Broadcom (AVGO) to design custom chips, signaling large, sustained industry investment in bespoke hardware.
- Geopolitical and export restrictions are materially affecting supply and market access: NVIDIA (NVDA) faces export license delays for H20 and Beijing is restricting foreign hardware in state-backed data centers, reducing foreign vendors' China market share.
Bullish
- Google's Ironwood TPUs undercut NVIDIA on price and are being opened for mass sale.
- Hyperscalers (Google, Amazon, Microsoft) building in-house chips to capture cloud AI workloads.
Bearish
- NVIDIA's H20 chip is stuck in export license limbo, delaying product availability.
- China is forcing state-backed data centers to use domestic chips, cutting foreign vendors' access.
Bullish tickers
GOOGLAMZNMSFTAVGOMETA
Bearish tickers
NVDAAMD
GOOGL
Bullish
Rolling out Ironwood TPUs for mass sale, undercutting NVIDIA on price and winning cloud contracts with major AI customers.
NVDA
Bullish
Continues to be the dominant supplier for most AI models and GPUs powering current large-scale workloads.
Bearish
H20 export license stuck, facing Chinese restrictions and national security reviews; China market share reported as down to zero.
AMZN
Bullish
Has its own in-house AI chips as part of the cloud rivalry and hardware strategy.
MSFT
Bullish
Deploying its own AI silicon in competition with other hyperscalers to capture cloud AI workloads.
AVGO
Bullish
Design partner for OpenAI's custom chip effort, signaling strong demand for bespoke AI hardware engineering.
META
Bullish
Listed as a major customer using Google's TPUs, benefiting from Google's hardware offerings in the cloud.
AMD
Bearish
Also facing tougher restrictions from Beijing that could limit its access to Chinese data center customers.
People mentioned
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