Hyperscaler
A very large cloud or internet operator that builds data centers at scale, such as Amazon, Microsoft, Google and Meta.
A hyperscaler runs very large fleets of data centers and buys compute, memory, networking and power equipment in large volumes. Their combined spending sets much of the demand for AI accelerators and data-center infrastructure. The term describes scale rather than a legal category.
Traders care because a small number of hyperscalers account for large shares of many suppliers' revenue. A single update to their spending plans can move several sectors at once, including chips, memory, networking, utilities and construction. Compare their guidance with the revenue their AI services are reported to generate.
Worked example (illustrative numbers, not real data): four hyperscalers each plan 10 billion dollars of AI data-center spending, for a total of 40 billion. A supplier that wins 15 percent of that spending would book 6 billion dollars, before any change in market share.