Nvidia Blackwell GPUs Far Outpace Big Tech's In-House ASICs, Morgan Stanley Says

The AI computing market is increasingly contested by Nvidia's general-purpose GPUs and in-house ASICs developed by Google and Amazon. Morgan Stanley argues that chip comparisons should not focus solely on deployment costs, as energy efficiency and output also shape investment returns. If Blackwell can deliver more computing power with less electricity, it will further entrench Nvidia's data-center advantage.

Morgan Stanley's latest report said Nvidia's Blackwell GPUs deliver two to eight times the performance per watt of chips developed in-house by Google and Amazon. Despite higher upfront deployment costs, they still offer better overall returns on investment. The report's publication date and specific financial figures were not disclosed. Groq, meanwhile, has emerged as an alternative on the strength of lower inference costs and high-speed performance.