Morgan Stanley: AI inference is an incredibly profitable business. In its newly released report, the firm used a detailed financial model to calculate, for the first time from an economic perspective, the profitability of global AI compute competition. The conclusion is that standardized “AI inference factories,” regardless of which big tech company’s chips they use, generally enjoy an average profit margin exceeding 50%. Among them, NVIDIA’s GB200 ranked first with an astonishing profit margin of about 78%. Google and Huawei’s chips were also assessed as “guaranteed profit businesses.” However, AMD, which had been highly anticipated by the market, was found to be suffering significant losses in the AI platform’s inference sector.