Google Set to Move Away from Broadcom for AI Chip Production, Aims for In-House Solutions
In Brief
The tech behemoth is set to part ways with Broadcom and has its sights set on creating its own artificial intelligence chips by 2027.
This shift is largely driven by a pricing disagreement with Broadcom and emphasizes Google's desire to gain more control over its hardware landscape, especially in the realm of AI infrastructure.
As part of its ongoing strategy, Google, under Alphabet's guidance, is preparing to discontinue its collaboration with Broadcom for AI chips and aims to manufacture them internally by 2027.
This decision arises from a recent pricing conflict between the two firms, compelling Google leadership to prioritize independence from outside vendors. This potential change has negatively impacted Broadcom's stock, causing a 5% drop in premarket trading, as reported. The Information .
Currently, Broadcom provides Google with tensor processing units (TPUs), which are crucial for AI applications. This partnership was a testament to Google’s dedication to enhancing its control and driving innovation within its hardware ecosystem.
In an ambitious move, Google is currently engaging with Marvell Technology to create a next-gen chip called \"Granite Redux,\" an initiative that aims to bolster Google’s advancements in generative AI, especially in response to competitors like Microsoft.
Creating AI chips in-house highlights Google’s serious commitment to innovation in AI, as well as a strategic pivot towards establishing a supply chain that is both cost-effective and self-sufficient for its hardware needs.
Broadcom's CEO Hock Tan recently noted that generative AI could significantly boost the company's revenue from semiconductors, which accentuates the importance of Google’s potential shift in the AI chip manufacturing landscape.
Google is investing heavily in the future of generative AI, highlighting its dedication through a $13 billion investment aimed at expanding its data center capabilities. This funding is set to enhance Alphabet's AI endeavors by upgrading GPUs, custom TPUs, and upgrading data center functionalities. announced Google's Fight Against the $2.6 Billion EU Antitrust Fine Heads to the Highest Court in Europe
Read more:
- Google Enhances AI Chatbot Bard with New Collaboration Features and Expands Language Options
- One of the co-founders of Google DeepMind promotes the ethical usage of Nvidia's AI chips across the United States.
- Please be aware that the information shared on this page is intended solely for informational purposes and should not be construed as financial, legal, investment, or any other type of advice. It’s crucial to only invest what you can afford to lose and to seek independent financial counsel if uncertainties arise. For more comprehensive information, we recommend reviewing the issuer’s terms and conditions as well as their support resources. MetaversePost is dedicated to providing accurate, objective news, but please keep in mind that market conditions can change unexpectedly.
Disclaimer
In line with the Trust Project guidelines Agne is a journalist covering the latest advancements and trends in the metaverse, AI, and Web3 for Metaverse Post. With a flair for storytelling, she has conducted numerous insightful interviews with field experts in pursuit of captivating narratives. Agne has a Bachelor’s degree in literature and a rich history of writing on diverse topics, spanning from travel and art to culture. Furthermore, she has dedicated her time as an editor for an animal rights organization, working to elevate awareness around animal welfare issues. You can reach her at
