Could you share your insights on the current AI ecosystem, highlighting which players are stronger or weaker? Please focus on AWS and Google, but also mention any other relevant players and explain their positions.

The TPUs are the final point of the spear that allows Google to penetrate deeply into the market, and this is very important. It is not just a technical aspect. The benefit of having your own chips is that they are designed specifically for AI inference and processing, which makes them superior to Nvidia's GPUs for certain tasks and better than the CPUs others use for more general activities. This is like a Ferrari built for racing, not a family van for the desert. It is finely tuned for its purpose.

Could you share your insights on the current AI ecosystem, highlighting which players are stronger or weaker? Please focus on AWS and Google, but also mention any other relevant players and explain their positions.

Let's start with the economics. It costs 20% of what Nvidia costs, offering a significant reduction in capital investment and operational expenditure because it costs less to run the necessary workloads. This cost advantage is something Google is leveraging into a pricing advantage, creating a competitive edge. The TPUs are one of three components, the others being Vertex AI as the development platform, and Gemini for the processing capability. It is the only one that is completely vertically integrated, having everything under their own umbrella with their own IP. This allows them to cook whatever they want without asking permission or sharing roadmaps, which would be required if Nvidia were developing the chip for them. Leaked product roadmaps could end up at Amazon, Microsoft or the Chinese. Consequently they have a huge advantage in terms of Intellectual property, cost reductions, and better performance improvements. All that gives better service to those paying for it, and a competitive pricing advantage. This is evident in their share price.

How do they compare in terms of usage and customer base?

I want to emphasize the positioning and cultural approach of each company. Amazon is built for builders, meaning SageMaker and Bedrock allow for a broad variety of applications. They are very mature; SageMaker has been around for a long time. Developers are familiar with it, and if you look at AWS hackathons and AWS days globally, or AWS reinvent, they build things in one day. They are very tuned to the developer community. You will see a lot of third party software and intellectual property developed by other people on top of it. It is very broad, far-reaching and stable.