I've been thinking about how the chip situation is developing in the data center infrastructure plays. The current situation looks like this:
$IREN (-4,1 %) , $CRWV (-4,87 %) or also $GLXY (-11,8 %) and the others are relying entirely on Nvidia GPUs (A100/H100) to benefit from the AI boom. The rental prices for Nvidia hardware are absurdly high, but business is going really well at the moment.
But now comes the problem: Google, Amazon and the other hyperscalers are developing their own AI chips (TPU, Trainium), which are much more efficient. And this is where it gets interesting - Google doesn't sell TPUs at all. They're only available in the Google Cloud.
As long as Nvidia remains the standard, business will continue to be great for the lessors. In the long term, however, Google's strategy could become a problem because the market for freely rentable AI infrastructure is shrinking.
Somehow I'm surprised that the issue is not yet visible in the price of infrastructure plays.
