Broadcom's Private Cloud Outlook 2026 Reveals an AI Tipping Point as Production Inference Shifts Decisively to Private Cloud
Broadcom released its Private Cloud Outlook 2026 report, finding that 56% of enterprises are running or planning to run production AI inferencing on private cloud, compared to 41% on public cloud. The report highlights a 15-percentage-point drop in public cloud usage for production AI workloads year-over-year, driven by cost concerns, with 97% of IT leaders believing some public cloud spend is wasted.
Key figures
- Survey sample size
- 1800
- It leaders see waste
- 97%
- Data sovereignty concern
- 54%
- Public cloud ai share drop
- 15 percentage points
- Waste exceeds 25 pct budget
- 52%
- Geopolitics affecting strategy
- 80%
- Enterprises already repatriated
- 50%
- Public cloud production ai share
- 41%
- Public cloud spend intent growth
- 10 points
- Private cloud production ai share
- 56%
- Private cloud spend intent growth
- 21 points
- Enterprises considering repatriation
- 83%
AI analysis
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AI-generated analysis of a public disclosure. Not investment advice; verify against the original document.