Bloomberg Television·2025-11-25 14:59Competition and Market Dynamics - The market is awakening to the possibilities of Google's TPUs, previously sold as part of a cloud-winning formula [1][2] - NVIDIA's dominance is being questioned, with analysts considering the impact of NVIDIA being brought down on the broader market [6] - Competition is seen as a positive development, offering choices and optionality in the AI CapEx landscape [7][8] - Alphabet's TPUs and associated software are emerging as a clear alternative to NVIDIA's CUDA ecosystem, potentially chipping away at NVIDIA's lock-in [10] - Other companies like Alibaba and Amazon are also pursuing vertically integrated strategies, developing their own chips and models [12] Technology and Efficiency - Energy efficiency is a key bottleneck and a crucial factor in the AI infrastructure race [5][16][17] - The battleground is shifting towards how much efficiency can be extracted from hardware through software [14] - Google's DeepMind is collaborating directly with the semiconductor team to optimize efficiencies [15] Investment and Valuation - The market is trying to find a more efficient answer to the AI CapEx question, with Google surpassing a $1 trillion valuation [7] - The depreciation question is becoming more prominent, with investors needing to assess the long-term value of backlogs and inventory builds given new energy-efficient options [19] - Investors are rotating into value-focused sectors like healthcare and defensives, reflecting concerns about tech valuations [21]