Alphabet-owned Google is planning to tie up with Taiwan’s chip maker MediaTek to design and produce the subsequent era of its synthetic intelligence (AI) chips Tensor Processing Models (TPUs), the Info reported on Monday.

The AI chips are anticipated to be produced subsequent 12 months.

The know-how big selected MediaTek partly as a result of the Taiwanese firm has a robust relationship with Taiwan Semiconductor Manufacturing Co. (TSMC) and expenses much less per chip as in comparison with Broadcom, the report added.

Nonetheless, not one of the two firms have made any official announcement concerning the partnership.

Google additionally has a partnership with chip designer Broadcom for the AI chips.

Whereas Google is reportedly working towards creating extra AI chips in-house, it’s nonetheless anticipated to depend on exterior companions equivalent to Broadcom and MediaTek for chip manufacturing, packaging, and high quality testing, The Info report stated.

Final 12 months, Google had launched its sixth-generation Tensor Processing Models in a bid to present itself and its Cloud clients a substitute for Nvidia chips, that are probably the most sought-after processors within the business.

Google had spent between $6 billion and $9 billion on TPUs in 2024, based on a Reuters report citing analysis agency Omdia.

Google’s TPU chips are key to its AI technique, powering inside AI analysis, cloud computing, and companies equivalent to Google Search, YouTube, and Gemini AI fashions.

Following the Google-MediaTek tie-up report, shares of Broadcom dropped on Monday. The inventory fell as little as $187.50 on the open earlier than recovering barely to $193.82, down 0.9 per cent.

Shares of Google’s father or mother Alphabet have been buying and selling at $166.81, down 0.48 per cent.

Intel’s new CEO plots overhaul of AI operations

In a separate developmemt, Intel’s incoming CEO Lip-Bu Tan has thought-about important modifications to its chip manufacturing strategies and synthetic intelligence methods forward of his return to the corporate on Tuesday, Reuters reported.

Intel shares gained greater than 7% on Nasdaq after the report.

Final week at a city corridor assembly following his appointment as CEO, Lip-Bu Tan instructed staff that the corporate might want to make “powerful selections,” Reuters reported.