To Reduce AI Costs, Google Wants to Ditch Broadcom as Its TPU Server Chip Supplier

Google executives are considering ending their relationship with Broadcom, a supplier of artificial intelligence chips, as early as 2027, according to an insider. The tech giant plans to design the tensor processing units in-house, which could result in billions of dollars in annual savings as AI development is a costly venture.

The decision comes after a prolonged dispute between Google and Broadcom over the pricing of the TPU chips. Earlier this year, Google set a goal to sever ties with Broadcom in an effort to reduce costs.

Key takeaways

Google executives are considering dropping Broadcom as a supplier of artificial intelligence chips as early as 2027.
Google plans to design the chips, known as tensor processing units, in-house.
The move could save Google billions of dollars annually as it heavily invests in AI development.
Google set a goal earlier this year to ditch Broadcom following a standoff over the price Broadcom was charging for the TPU chips.

To Reduce AI Costs, Google Wants to Ditch Broadcom as Its TPU Server Chip Supplier

Key takeaways

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