According to reports, people familiar with the matter said today, Google plans to abandon Broadcom as early as 2027, switch to independent research and development of AI server chips.
The source said that earlier this year, Google and Broadcom failed to negotiate on the issue of chip pricing. For this reason, Google decided to abandon Broadcom as its AI chip tensor processing units (TPU) supplier.
This has been discussed extensively by Google executives. This means that Google will design its own TPU chips. According to estimates, this move can help Google save billions of dollars in costs every year. Currently, Google is investing heavily in artificial intelligence research and development. Compared with other types of research and development, artificial intelligence research and development is particularly expensive.
Broadcom CEO Chen Fuyang (Hock Tan) recently said that next year, generative artificial intelligence will account for more than 25% of the company’s semiconductor revenue. In the second quarter of fiscal 2023, which ended in April, AI revenue accounted for about 15% of Broadcom’s semiconductor revenue, compared with 10% in fiscal 2022.
Last year, Microsoft-backed AI startup OpenAI sparked an AI arms race in the tech industry after it released ChatGPT, a generative chatbot. This year, Google has also increased its investment in generative AI to catch up.
Research firm Similarweb data show that in August this year, Google’s AI chatbot Bard was visited 183 million times, only 13% of ChatGPT visits.
At the same time, people familiar with the matter also said, Google also plans to cooperate with chipmaker Marvell Technology, next year launched a new network chip, development code name “Granite Redux”.
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