Top cloud providers to outspend Ireland's GDP on AI in 2026
The Register
February 26, 2026
AI-Generated Deep Dive Summary
The world's leading cloud providers, including Google, Amazon, Meta, Microsoft, Oracle, Tencent, Alibaba, and Baidu, are set to invest over $710 billion in AI infrastructure by 2026—a staggering figure that exceeds Ireland's GDP for the same year. This massive investment is driven by the growing demand for AI development and deployment, with hyperscalers focusing on high-performance servers equipped with GPU accelerators from Nvidia or AMD, as well as custom-built ASICs for improved performance and energy efficiency. The shift toward specialized hardware highlights the competitive landscape of AI innovation.
The memory shortage caused by the rapid adoption of AI servers has led to rising prices and supply chain disruptions. Chipmakers are prioritizing high-margin products like HBM (high-bandwidth memory) and server-grade chips, exacerbating the issue. To address this, companies like SK Hynix and Sandisk are developing High-Bandwidth Flash (HBF), a new memory type designed to complement HBM while offering higher capacity at comparable costs. This technology aims to reduce the total cost of ownership and improve scalability for AI systems, with demand expected to surge by 2030.
The hyperscalers are also making strategic hardware choices to optimize their AI workloads. Google is leading the way with its Tensor Processing Units (TPUs), which will account for 78% of its AI server
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Originally published on The Register on 2/26/2026