Google has been working with Broadcom for the past few years to develop artificial intelligence technology and chips for high-volume data centers. However, in line with its strategy to reduce costs, the company decided to end this cooperation by 2027.According to the news provided by Reuters, Google plans to develop Tensor chips in-house by 2027. For now, the task of supplying these chips belongs to Broadcom. The main reason for this decision between the two companies is a disagreement on price.
Broadcom shares fell
Analysts say that Google could save several billion dollars annually by starting to design TPU (Tensor Processing Unit) chips in-house. Broadcom’s shares fell 6% on Thursday after the news broke.
Google also no longer plans to supply the chips that connect servers to Ethernet switches in data centers from Broadcom. The search giant may turn to Marvell Technology in this regard. However, there is no definitive information yet on the stage of negotiations regarding this change.
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