Will Alphabet Be the Quantum Computing's Nvidia by 2035?

Quantum computing is emerging as a key area in AI, and Alphabet is positioning itself to lead. The company’s diverse resources could significantly boost its AI services within a decade.

The Next Tech Infrastructure Giant

Every major tech shift creates a dominant infrastructure player. Think Cisco for the internet and Apple for smartphones. Now, Alphabet aims to lead in quantum computing, following Nvidia’s AI success.

Alphabet has unique research, hardware, and software capabilities. The company integrates these assets to create a robust ecosystem for today's AI and future quantum advancements.

DeepMind's Role

DeepMind, more than a research project, drives Alphabet's innovation. It's producing breakthroughs in reinforcement learning and computing simulations, enhancing Google's products.

TPUs and Cloud Dominance

Nvidia became essential with its GPUs and CUDA software. Alphabet mirrors this with Tensor Processing Units (TPUs), custom accelerators for deep learning, integrated into Google Cloud. This setup gives Alphabet an edge over Microsoft Azure and Amazon Web Services by offering structural advantages.

This hardware-software integration attracts major clients, like Meta, OpenAI, and Anthropic. They depend on Google's TPU network for advanced processing needs.

Cirq and Quantum Programming

Alphabet provides Cirq, an open-source framework for quantum programming. Like Nvidia's CUDA, Cirq enables developers to experiment with quantum applications, integrating them into Alphabet's ecosystem.

While quantum computing is still early-stage, Cirq allows researchers and businesses to develop algorithms now. Early adopters will find themselves embedded within Alphabet's framework as quantum AI matures.

Financial Implications and Growth

For investors, the key question is whether Alphabet's vision will yield financial results. Over the next decade, AI and quantum initiatives could reshape Alphabet's revenue and profitability.

Cloud Revenue Upside

Google Cloud already generates $54 billion annually. Alphabet's TPUs offer a scalable alternative for enterprises seeking to diversify beyond Nvidia. This could push Google Cloud's annual revenue past $100 billion in the next decade.

Ecosystem Lock-In

D.A. Davidson values DeepMind and TPUs at nearly $900 billion combined. Cirq adds to this, giving Alphabet a first-mover advantage in quantum AI, similar to CUDA's impact on Nvidia.

This creates higher switching costs for businesses and a lasting competitive advantage. If Alphabet succeeds, it could be valued as an AI infrastructure leader, not just an ad-tech company.

Alphabet’s valuation could increase as it becomes a key tech platform. Over the next 10 years, it could be the backbone of quantum-powered infrastructure, potentially adding trillions to its market value.