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Google discussed dropping Broadcom as AI chips supplier: report

Economic Times

Economic Times · 1y ago

Google discussed dropping Broadcom as AI chips supplier: report

Google is reportedly considering dropping Broadcom as a supplier of artificial intelligence (AI) chips by 2027. If this happens, Google will develop the chips in-house. The decision to part ways with Broadcom was driven by a pricing dispute between the two companies. Google has been investing in generative AI and is looking to catch up with Microsoft-supported OpenAI. Additionally, Google has been working to replace Broadcom with chipmaker Marvell Technology.

Related News

Broadcom sees $10 billion in AI chip sales in 2024, but shares dip

Economic Times

Economic Times · 1y ago

Broadcom sees $10 billion in AI chip sales in 2024, but shares dip

Broadcom expects $10 billion in revenue from AI-related chips this year, but its stock dipped as its full-year forecast fell short of investor expectations. Similarly, Marvell Technology's revenue forecast also disappointed, causing its stock to decline. Both companies sell networking chips used in AI computing and assist clients in designing custom AI chips. Broadcom CEO Hock Tan stated that a significant portion of their AI chip revenue would come from two major clients, widely believed to be Google and Meta Platforms. Broadcom's custom chip business is expected to have high margins. Nonetheless, Broadcom did not update its annual revenue forecast, causing some disappointment among investors.

Broadcom’s AI success won’t all come at Nvidia’s expense

Livemint

Livemint · 8m ago

Broadcom’s AI success won’t all come at Nvidia’s expense

Broadcom's long-term forecast for its AI business has boosted the company's stock price, pushing its market capitalization over $1 trillion. This surge has negatively impacted Nvidia's stock price, which has declined by about 4% in the past two days. While Broadcom's market cap is still far below Nvidia's, the recent boost in stock price has brought Broadcom's price-to-earnings ratio to its highest ever. This is due to its exposure to the AI market as a supplier of networking processors and partnerships with major tech companies developing their own AI chips. However, Nvidia's market-leading silicon is still in high demand, as companies like Google and Amazon continue to emphasize their partnership with Nvidia. Both Broadcom and Nvidia are still expected to perform well in the AI market, with analysts maintaining a buy rating for both stocks.

Nvidia chases $30 billion custom chip market with new unit

Economic Times

Economic Times · 1y ago

Nvidia chases $30 billion custom chip market with new unit

Nvidia is establishing a new business unit dedicated to creating customized chips for cloud computing companies and AI processors. The move aims to tap into the growing market for custom AI chips while protecting Nvidia from competitors seeking alternative solutions. As the dominant player in the high-end AI chip market, Nvidia controls roughly 80% of this sector. However, to meet specific needs regarding cost and energy consumption, major customers like Meta and Microsoft have started developing their own internal chips. Nvidia now plans to assist these companies in designing custom AI chips, potentially competing against industry rivals Broadcom and Marvell. Other target markets for Nvidia's custom chips include telecom, automotive, and video games.

Tech giants form AI group to counter Nvidia with new interconnect standard

Arstechnica

Arstechnica · 1y ago

Tech giants form AI group to counter Nvidia with new interconnect standard

Several major tech companies, including Google, Intel, Microsoft, Meta, AMD, Hewlett Packard Enterprise, Cisco, and Broadcom, have formed the Ultra Accelerator Link (UALink) Promoter Group. The group aims to develop an open standard interconnect technology for AI accelerator chips in data centers as an alternative to Nvidia's proprietary NVLink. The goal is to enable multiple companies to contribute and develop AI hardware advancements, reducing reliance on Nvidia's ecosystem and providing more options in the AI chip market. UALink 1.0, the first version of the proposed standard, is expected to improve speed and reduce latency compared to existing interconnect specifications.

Magnificent Seven set to shed $1 trillion in value, led by Apple, Nvidia

Economic Times

Economic Times · 1y ago

Magnificent Seven set to shed $1 trillion in value, led by Apple, Nvidia

Apple and Nvidia led a sell-off in technology stocks on Monday as fears of a U.S. recession and Berkshire Hathaway cutting its stake in Apple weighed on the sector. Shares of Alphabet, Amazon, Meta Platforms, Microsoft, and Tesla also fell. Chip stocks, including Advanced Micro Devices, Intel, Super Micro Computer, and Broadcom, also saw significant declines. The slide in stock prices was influenced by a weak U.S. payrolls report and concerns about the tech industry's outlook. Additionally, reports of design flaws potentially delaying the launch of Nvidia's AI chips impacted the company's shares.

Apple aims to cut Nvidia reliance with Broadcom partnership on AI chip: Report | Mint

Livemint

Livemint · 8m ago

Apple aims to cut Nvidia reliance with Broadcom partnership on AI chip: Report | Mint

Apple is reportedly collaborating with Broadcom to develop its first server chip specifically for AI processing. The chip, code-named Baltra, is expected to enter mass production by 2026. This move aligns Apple with other major tech companies that have created their own AI chips. By reducing reliance on Nvidia's expensive processors, Apple aims to enhance its AI capabilities across devices and services. Manufacturing the chip would involve the use of Taiwan Semiconductor Manufacturing Co's advanced fabrication process. Apple and Broadcom have previously partnered for the development of 5G radio frequency components.

China's ByteDance working with Broadcom to develop advanced AI chip

Economic Times

Economic Times · 1y ago

China's ByteDance working with Broadcom to develop advanced AI chip

China's ByteDance is collaborating with U.S. chip designer Broadcom to develop an advanced AI processor to secure a steady supply of high-end chips amid tensions between the U.S. and China. The custom 5nm chip, compliant with U.S. export controls, will be manufactured by Taiwan Semiconductor Manufacturing Company (TSMC). The partnership aims to lower costs and ensure availability of higher-end chips crucial for ByteDance's AI algorithms. ByteDance has been purchasing Nvidia and Huawei chips to support its AI efforts and has posted semiconductor-related job openings on its website.

Marvell wins new AI chip business, but at lower margins

Economic Times

Economic Times · 1y ago

Marvell wins new AI chip business, but at lower margins

Marvell Technology has secured new business partnering with major US-based cloud computing companies to develop custom chips for artificial intelligence (AI). However, Marvell noted that this custom chip unit has lower profit margins compared to its other lines of business. Despite this, Marvell expects the AI chip business to generate $2.5 billion in sales by 2026. Marvell competes with companies like Broadcom and is developing AI chips for multiple customers to be released in the coming years. The profitability of Marvell's custom chip unit is being closely monitored by investors as it competes with industry leader Nvidia.

Apple nears switch to in-house Bluetooth and WiFi chip for iPhone, smart home: reports

Economic Times

Economic Times · 8m ago

Apple nears switch to in-house Bluetooth and WiFi chip for iPhone, smart home: reports

Apple is reportedly planning to replace some of the parts supplied by Broadcom with its own custom chip for Bluetooth and Wi-Fi connections in its devices starting next year. The chip, called Proxima, has been in development for several years and is expected to be integrated into iPhones and smart home devices produced in 2025. The in-house chips will be manufactured by Taiwan Semiconductor Manufacturing Co. This move is separate from Apple's plans to launch its own cellular modem chips next year. Apple has not commented on the report.

Microsoft singles out Google's competitive edge in generative AI

Economic Times

Economic Times · 1y ago

Microsoft singles out Google's competitive edge in generative AI

Google, the Alphabet unit, has a competitive advantage in generative artificial intelligence (AI) due to its vast data and AI-optimized chips, according to Microsoft's response to an EU antitrust consultation. Microsoft highlighted concerns about the growing popularity of generative AI, which can generate human-like responses and its potential for misinformation. The report stated that Google's vertical integration, from chips to app stores, gives it an edge, while its access to proprietary data from Google Search Index and YouTube helps train its language model Gemini. Microsoft also defended partnerships in the AI space to promote competition and prevent anticompetitive advantages.

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