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ET Graphics: AI puts data handlers on

ETtech | May 5, 2026 11:57 AM CST

Synopsis

Cloud companies are capitalising on the AI surge. Spending on AI infrastructure is rapidly increasing, with billions committed for future years. Meanwhile, the market for AI chips is becoming more competitive. Nvidia's valuation is soaring, but other players are entering the arena. This dynamic signals major shifts in the technology landscape.

Cloud companies are milking the AI boom like nobody else. Big Tech earnings for the March quarter cemented two important trends. ET's Himanshi Lohchab picks crucial threads:

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First, the spending spree among cloud companies on AI capex continues to swell, with commitments reaching $725 billion in 2026, a 75% YoY growth.

Second, even as superchip maker Nvidia touches $5.3 trillion valuation, competition in the chip market is heating up.