Google to Partner with MediaTek on Next-Gen AI Chips

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Google is reportedly preparing to collaborate with Taiwan’s MediaTek to develop the next version of its Tensor Processing Units (TPUs) for AI applications, with production expected to begin next year. This move signifies a shift in the tech giant’s chip strategy, as it seeks to diversify its AI chip supply chain. However, Google will continue its long-standing partnership with Broadcom, the chip designer it has worked with exclusively in recent years for its TPU development.

Despite the new partnership with MediaTek, Google’s ties with Broadcom remain intact. A source from Google revealed that the company plans to maintain its collaboration with Broadcom, which has been crucial in the development of previous AI chips. This dual partnership highlights Google’s commitment to staying competitive in the rapidly evolving AI chip market.

Google’s decision to work with MediaTek is influenced by the Taiwanese company’s strong relationship with Taiwan Semiconductor Manufacturing Company (TSMC), which is key in the production of advanced chips. Additionally, MediaTek is able to offer a more cost-effective solution for Google compared to Broadcom, further strengthening the appeal of this new partnership.

The move comes as Google strives to reduce its reliance on Nvidia, whose chips are currently in high demand by competitors like Microsoft-backed OpenAI and Meta Platforms. Google recently launched its sixth-generation TPUs to provide an alternative to Nvidia’s chips, further bolstering its competitive edge in the AI industry. Google’s investment in AI chip development has been significant, with reports indicating it spent between $6 billion and $9 billion on TPUs in the past year alone.

Source: reuters

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