Intel shares soared 13% after an order for AI chips from Google. Earlier they were produced by TSMC
In addition, Nvidia is testing the possibility of using Intel technology to produce a new processor, The Information writes
According to The Information's sources, Intel will receive an order from Google that TSMC probably couldn't take / Photo: Tada Images/Shutterstock.com
Alphabet, Google's holding company, recently placed an order with Intel to produce more than 3 million of its own TPU AI chips in 2028, The Information reported, citing sources. Alphabet is looking for new capacity to produce the chips as its current partner, Taiwan's TSMC, is no longer able to meet all of its customers' demands due to high utilization, the publication said.
Details
Google, after months of testing Intel's technology, has decided to outsource some of its Tensor Processing Units (TPUs) to Intel, The Information reported. It notes that Intel is receiving orders from customers such as Google amid high capacity utilization at Taiwan's TSMC, which is unable to meet all of its customers' needs. It was TSMC that fulfilled orders for previous generations of TPUs for Google.
Also, according to two of The Information's sources, chipmaker Nvidia is testing the possibility of using Intel technology to produce a new processor that would combine four graphics chips in a single package.
Following The Information, Intel shares jumped 13%, reaching $112.4 at its peak for the day. Shares of Google's TPU chip developer, Broadcom, were up 4.4%. Shares of both companies fell hard last week after Broadcom gave a forecast for AI chip sales below Wall Street's expectations.
Context
In late April, Intel gave a sales forecast that far exceeded Wall Street's expectations. This was a sign that the chipmaker has finally begun to capitalize on the boom in spending on artificial intelligence, Bloomberg writes. In May, Intel reached a tentative agreement with Apple, under which the contract division Intel Foundry will produce for the iPhone maker some of the chips used in the company's devices.
Google has become one of the most successful developers of its own AI chips in an industry dominated by Nvidia, Bloomberg writes. In recent months, the company's TPUs have become one of the most sought-after products in Silicon Valley, and Google expects to build on this success with new generations of processors, the agency explains.
This article was AI-translated and verified by a human editor
