Bill Cara provides a detailed market analysis of the rapidly bifurcated infrastructure for Artificial Intelligence compute, labeling the three major ecosystems as “Kingdoms.”
Bill’s analysis centers on the competitive dynamics between the Nvidia Kingdom, which acts as a “Merchant Arms Dealer” selling standardized GPUs to everyone, and the Google Kingdom, a “Walled Garden” that uses its proprietary TPUs exclusively internally for optimal efficiency. A third entity, the AWS “Utility” Ecosystem, is also examined, which focuses on providing cost-effective and reliable custom chips (Inferentia and Trainium) for its vast cloud customer base. The report maps the complex supply chains for each kingdom, identifying “Double Dipper” companies like TSMC and Vertiv that benefit regardless of the winner, and then provides investment recommendations based on valuation and dividend safety for those betting on the success of a specific ecosystem.
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