Exciting news is on the horizon! Google is reportedly teaming up with Taiwan’s MediaTek to develop its next-generation AI chips, known as Tensor Processing Units (TPUs), set for launch in 2026, as highlighted by The Information. This collaboration marks a significant step in Google’s ongoing commitment to advancing AI technology.
While the partnership with MediaTek is in the spotlight, sources confirm that Google will continue its longstanding relationship with Broadcom, the renowned San Jose-based chip designer. A Broadcom representative even reassured that their collaboration remains strong, ensuring that Google is well-positioned in the competitive AI landscape.
Google’s AI Chip Strategy Mirrors Nvidia
Much like Nvidia, Google has taken the innovative approach of designing its own AI server chips for internal research and cloud customers. This strategy not only reduces Google’s reliance on Nvidia’s highly sought-after processors but also provides a compelling edge in the ever-evolving AI race.
With competitors like Microsoft-backed OpenAI and Meta experiencing surging demand for Nvidia’s chips, Google is making strides to carve its own niche. The recent unveiling of its sixth-generation TPU in late 2024 provides an alternative for its cloud users, enhancing Google’s offerings in a market dominated by Nvidia.
The choice of MediaTek is strategic, given its strong ties with TSMC, a leading chip manufacturer, and lower per-chip costs compared to Broadcom. Research firm Omdia estimates that Google invested between $6 billion to $9 billion on TPUs in 2024, based on Broadcom’s AI semiconductor revenue targets.
It’s important to note that these new TPUs differ from the Tensor chips found in Google’s Pixel smartphones. They are specifically designed to power Google’s global server network, giving the tech giant a crucial advantage in AI innovation, particularly as Nvidia’s chips and GPUs continue to face scarcity. This move reinforces Google Cloud’s position against formidable competitors like AWS.
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