Google and Amazon Just Made Nvidia Easier to Replace

The AI race is entering a new phase. SpaceX is turning into an AI powerhouse, generating $7.6 billion in quarterly AI revenue. Meanwhile, Google and Amazon are challenging Nvidia's dominance by making alternative chips easier to use. And Salesforce is spending $5.66 billion to strengthen its AI capabilities through Braze. Three major developments, one clear trend: the biggest tech companies are no longer just building AI. They're fighting to control the infrastructure, software, and customer relationships behind it.

In today’s post:

• Nvidia's AI Dominance Faces a New Kind of Threat

• SpaceX Just Made $7.6 Billion From AI in One Quarter

• Salesforce Is Spending $5.66 Billion to Reinvent Its AI Business

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STRATEGY

Google and Amazon want to break Nvidia's grip on AI development.

Google just released TorchTPU as an open-source project. Amazon launched TorchNeuron a day earlier. Both are targeting something bigger than Nvidia's chips. They're targeting the software advantage keeping developers loyal to Nvidia. And that could change how the AI industry competes.

• Nvidia has a powerful software advantage. PyTorch, a popular AI development framework, was built around Nvidia's GPUs. Some estimates suggest it powers 85% of AI applications.

• Google is making switching easier. TorchTPU lets developers move existing PyTorch applications onto Google's TPUs. They can do this without rewriting their code.

• Amazon is taking the same approach. TorchNeuron helps developers run PyTorch applications on Amazon's Trainium chips. It also makes moving workloads to AWS easier.

• Amazon wants deeper changes. It's contributing code to PyTorch that reduces Nvidia-specific dependencies. This could make the framework friendlier to competing chips.

• Google is building a broader ecosystem. It collaborated with Meta, Hugging Face, and other AI infrastructure companies. These partnerships aim to improve compatibility with popular development tools.

• Google also introduced migration tools. Its TPU agent suite helps developers move applications and fix errors. This reduces the technical work involved in switching hardware.

• Nvidia isn't losing its dominance overnight. Developers still need compelling reasons to switch. Performance, costs, and reliability will matter more than compatibility alone.

Nvidia's advantage has never been just about better chips. It's also about making those chips the easiest choice. Google and Amazon understand this. They're trying to remove the friction that keeps developers dependent. But easier switching doesn't guarantee people will switch. The real opportunity comes when alternatives become cheaper and equally reliable. If developers can choose any chip without changing their software, what happens to Nvidia's pricing power? That's the question worth watching.

AQUISITION

Salesforce is spending billions to make AI part of every customer interaction.

Salesforce just announced its $5.66 billion acquisition of Braze. The deal gives Salesforce more than another marketing platform. It adds technology that responds to customer behavior in real time. And it reveals how Salesforce plans to defend its business.

• Salesforce is acquiring Braze for $5.66 billion. Braze shareholders will receive $47.50 per share in cash. That represents a 58.1% premium to its previous closing price.

• Investors welcomed the announcement. Braze shares jumped more than 50% on Tuesday. The reaction reflects the substantial premium Salesforce agreed to pay.

• Braze brings 2,770 customers. Its clients include Canva, Instacart, and Venmo. Its platform helps brands personalize messages, offers, and customer experiences.

• Real-time engagement is the strategic opportunity. Braze helps companies respond immediately to customer actions. Salesforce can connect those capabilities with its existing customer data.

• Salesforce is building through acquisitions. It acquired Informatica for $8 billion last year. Earlier this year, it announced a $3.6 billion deal for Fin.

• AI is also creating pressure on traditional software. Investors worry that AI could reduce demand for existing applications. Salesforce is responding by expanding what its software can do.

• The deal won't immediately change Salesforce's financial outlook. Management expects closing during fiscal 2028. Its fiscal 2027 forecast remains unchanged.

Salesforce isn't simply buying another marketing company. It's trying to own more of the customer relationship. Customer data tells businesses what people have done. Real-time engagement helps decide what should happen next. AI could make those decisions increasingly automatic. But combining platforms doesn't automatically create a better product. The difficult part is making everything work together. Will Salesforce turn its acquisitions into one useful system, or another collection of tools? That will determine whether this $5.66 billion bet pays off.

INVESTMENT

SpaceX is becoming an AI company faster than anyone expected

SpaceX just reported its second quarter as a public company. Revenue more than doubled, reaching $14.5 billion. But rockets weren't the biggest growth driver. AI was. And the spending behind that growth raises an interesting question.

• Revenue surged 159% to $14.5 billion, beating Wall Street's $13 billion forecast.

• SpaceX returned to profitability, earning $4.4 billion after losing $1.05 billion last year.

• AI became its largest business, generating $7.6 billion in quarterly revenue. That's up from just $813 million a year earlier.

• AI spending is accelerating. Capital expenditures reached $19.6 billion, nearly tripling year over year. Management expects $35–40 billion in spending next quarter.

• Starlink remains a powerful growth engine. Revenue increased 69% to $5.2 billion, supported by 13.6 million consumer subscribers.

• Musk is considering a SpaceX–Tesla merger. Both companies have formed committees to explore the possibility. Shareholder approval would be essential.

• The stakes extend beyond SpaceX. Anthropic and OpenAI are preparing potential public offerings. Investors will closely watch whether AI revenue can justify rising infrastructure costs.

SpaceX's biggest story isn't its return to profitability. It's how quickly AI has overtaken its traditional businesses. But revenue growth alone doesn't prove the economics work. Spending is rising almost as quickly as ambition. And that's the question facing the entire AI industry. Can these companies generate enough cash to justify their investments? Because building the future is expensive. Making that future profitable is a different challenge.

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