Research: Enterprise AI Workloads Are Tipping Toward Private Cloud

Broadcom is framing its latest private cloud research around what it calls an enterprise AI “tipping point,” saying production AI workloads are changing how organizations evaluate cloud architecture, cost, security, and governance.

The company’s Private Cloud Outlook 2026 report, titled “The AI Tipping Point,” is based on a global survey of 1,800 senior IT decision-makers across the Americas, Europe and Asia-Pacific. In a news announcement, Broadcom asserted that the AI experimentation phase is over and that private cloud is where enterprise AI workloads are being deployed for security and scale. The company said the shift is being shaped by “costs, complexity, and control” as enterprises move AI workloads into production.

Production AI Shifts Toward Private Cloud

Broadcom said 56% of enterprises surveyed are running or planning to run production AI inferencing on private cloud. The company also said public cloud use for the same workloads fell 15 percentage points year over year, from 56% to 41%.

[Click on image for larger view.] Where AI-based Applications or Workloads Currently Run (source: Broadcom).

The report says public cloud remains part of enterprise IT strategy for experimentation, elastic capacity, and specialized services. But Broadcom said AI production workloads introduce sustained compute demand, sensitive data flows, governance requirements, and performance expectations that can expose limits in a purely public cloud approach.

The shift is also reflected in repatriation data. Broadcom said 83% of enterprises are considering or have already repatriated workloads from public cloud to private cloud, and 50% have already repatriated some workloads. In 2025, the corresponding figures were 69% considering or already…

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