In a significant shift within the AI industry, CPUs are becoming the new bottleneck as demand for computing power surpasses the traditional focus on GPUs. Google and Intel have entered a multi-year agreement to deploy Intel's Xeon processors across global AI data centers, addressing this emerging bottleneck. Intel CEO Chen Liwu emphasized the importance of CPUs and IPUs in enhancing AI system performance and efficiency. The CPU market is experiencing a supply crisis, with server CPU prices rising by 30% in late 2025. AMD's data center business reports unprecedented CPU demand, extending delivery times significantly. The shortage is exacerbated by TSMC's 3nm production line constraints, prioritizing GPU orders over CPUs. Industry leaders like Elon Musk are investing in custom CPU solutions, highlighting the CPU's growing role in AI infrastructure. As AI workloads evolve, CPUs are crucial for handling complex tasks beyond GPU capabilities. Companies like Intel, AMD, and NVIDIA are adapting strategies to meet this demand, with Intel focusing on Xeon processors and AMD benefiting from increased server CPU revenue. NVIDIA's approach emphasizes CPU-GPU collaboration, underscoring the CPU's role as a coordination hub in AI systems. The shift towards CPU-centric architectures is reshaping the competitive landscape in AI infrastructure.