Google is reportedly preparing to partner with Taiwan’s MediaTek to develop its next-generation AI chips, known as Tensor Processing Units (TPUs), set to launch in 2026, according to The Information.
Sources close to the project confirmed the collaboration. The report noted that Google is not ending its long-standing partnership with Broadcom, the San Jose-based chip designer. A Broadcom employee emphasized that the relationship remains intact.
Google’s AI Chip Strategy Mirrors Nvidia
Similar to Nvidia, Google designs its own AI server chips for internal research and rents them to cloud customers. The report stated this strategy reduces Google’s dependence on Nvidia’s highly sought-after chips, offering a competitive edge in the AI race.
Rivals like Microsoft-backed OpenAI and Meta Platforms have seen surging demand for Nvidia processors. In late 2024, Google unveiled its sixth-generation TPU, providing an alternative to Nvidia’s industry-leading chips for itself and its cloud users, the report added.
Google opted for MediaTek due to its strong ties with TSMC, a top chip manufacturer, and lower per-chip costs compared to Broadcom, the report explained. Research firm Omdia estimates Google spent $6 billion to $9 billion on TPUs in 2024, based on Broadcom’s AI semiconductor revenue targets for that year.
The report clarified that these TPUs differ from the Tensor chips in Google’s Pixel smartphones and are built to power Google’s global server network. By crafting its own chips, Google believes it gains a key advantage in AI innovation, especially as Nvidia’s chips and GPUs remain scarce. Experts observed this move strengthens Google Cloud’s standing against competitors like AWS.