Google Plans Own Inference Chips as Nvidia Forecasts $91B Revenue, $80B Buyback
Tech giants including Alphabet plan to invest over $700 billion in AI infrastructure this year, prompting Google to develop its own inference chips to reduce Nvidia reliance. Nvidia’s $80 billion buyback and $91 billion Q2 revenue forecast underscore supplier dominance that could affect Google’s AI costs.
1. Nvidia's Q2 Forecast and Buyback
Nvidia projects second-quarter revenue of $91 billion, plus or minus 2%, surpassing Wall Street’s $86.84 billion estimate, and unveiled an $80 billion share repurchase program alongside raising its quarterly dividend to $0.25 per share.
2. Alphabet's AI Infrastructure Strategy
U.S. tech leaders led by Alphabet are expected to spend over $700 billion on AI infrastructure this year, fueling Alphabet’s effort to design proprietary inference chips aimed at reducing dependency on third-party processors and controlling AI deployment costs.