Google aims to design its own AI chips to reduce its dependence on Broadcom and Nvidia. To do this, a partnership with MediaTek is being considered.
Google has quickly established itself Google is considered one of the leaders in artificial intelligence. But training AI models and powering functions based on them represents a significant cost for the firm, which is looking to save money. According to an investigation by The Information, Google has entered into negotiations with MediaTek to supply components.
Google's AI cloud servers use TPUs designed in partnership with Broadcom and manufactured by TSMC. For Google, this is a way of breaking a situation of exclusivity with Broadcom and internalizing part of the process. According to a source within TSMC, MediaTek would have the advantage of charging less than its competitors. This would save Google significant money and could also put pressure on Broadcom, which would be at risk of losing market share if it doesn't lower its prices. Broadcom counts Meta, ARM, OpenAI, and Apple among its customers. Google wants to develop AI chips in-house, with MediaTek and TSMC as partners? Google will handle much of the TPU design in-house, but MediaTek would be responsible for developing the chips' I/O modules, a key component in transferring information. MediaTek will also reportedly take over Broadcom's role as intermediary with TSMC and quality control. For its part, Google is recruiting chip design engineers in Taiwan, including former TSMC employees, for the development of its TPUs.
Initially, Google will produce two different chip models. One will be dedicated to training new AI models, the other will power AI features integrated into its services, such as Gemini, Search, or YouTube. The demand for AI continues to explode, and it risks becoming a must-have on all our devices and software in the future.
Google is taking the lead in wanting to create a certain long-term independence for itself. But for now, the group is still very far from being autonomous. Google spent between $6 and $9 billion on TPU in 2024 alone and recently placed an order for Blackwell chips worth more than $10 billion with Nvidia.
Source: The Information
0 Comments