Google Partners with Intel for TPU Production Amid AI Demand
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
Source: NASDAQ.COM
- TPU Order Scale: Google has placed an order for 3 million TPUs with Intel, to be delivered by 2028, marking a significant trust in Intel and reducing reliance on TSMC, thereby ensuring a stable supply of AI chips.
- New Architecture Launch: At the Cloud Next conference, Google introduced the TPU 8t and TPU 8i, optimized for training and inference workloads respectively, achieving 2 to 4 times faster performance and 30% lower costs, significantly enhancing operational efficiency.
- Market Opportunity Expansion: Google's decision to sell TPUs to select customers represents a strategic shift that will significantly expand its total addressable market, driving future revenue growth and reflecting strong demand in the AI sector.
- Impact on Intel: This TPU order not only revitalizes Intel's foundry business but could also change its position in the AI chip market, further validating its technological capabilities and competitive strength in the AI domain.
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Analyst Views on GOOGL
Wall Street analysts forecast GOOGL stock price to rise
33 Analyst Rating
26 Buy
7 Hold
0 Sell
Strong Buy
Current: 363.790
Low
305.00
Averages
374.25
High
400.00
Current: 363.790
Low
305.00
Averages
374.25
High
400.00
About GOOGL
Alphabet Inc. is a holding company. The Company's segments include Google Services, Google Cloud, and Other Bets. The Google Services segment includes products and services such as ads, Android, Chrome, devices, Google Maps, Google Play, Search, and YouTube. The Google Cloud segment includes infrastructure and platform services, collaboration tools, and other services for enterprise customers. Its Other Bets segment is engaged in the sale of healthcare-related services and Internet services. Its Google Cloud provides enterprise-ready cloud services, including Google Cloud Platform and Google Workspace. Google Cloud Platform provides access to solutions such as artificial intelligence (AI) offerings, including its AI infrastructure, Vertex AI platform, and Gemini for Google Cloud; cybersecurity, and data and analytics. Google Workspace includes cloud-based communication and collaboration tools for enterprises, such as Calendar, Gmail, Docs, Drive, and Meet.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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