AVGO Tan: "intense competition forces companies to keep investing in their own strategic chips"
Nvidia’s Innovation Speed Remains Hard to Match
Beyond dependency, Tan argues that Broadcom’s big customers, like Meta, would struggle to match the speed of innovation set by giants like Nvidia (NVDA) on their own. This intense competition forces companies to keep investing in their own strategic chips.
For Broadcom, playing down the TPU’s long-term dominance is a necessary strategy. It helps convince its other large, independent customers to continue their own expensive, long-term work building custom AI chips with Broadcom, instead of just making a quick “transactional move” to Google’s TPU.
Why Major Tech Rivals Reject the TPU Path
CEO Hock Tan believes that other major customers, such as Meta Platforms (META) and TikTok-parent ByteDance, will ultimately reject the TPU path because they want full control over their own AI hardware destiny. These rivals, he argues, prefer developing their own custom AI accelerators, or “XPU racks,” rather than relying on hardware that ties them directly to Google.
Broadcom CEO pushes clients to custom chip destiny as he says Google’s TPU ‘is a transactional move’
PS
Shrink n Stack chips will be made regardless.
Plain.
Simple.
ASML
Village |
