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Intel Surges on Massive Google TPU Order Report
9 Jun
Summary
- Google reportedly tapped Intel for over 3 million TPUs in 2028.
- This deal signifies a major win for Intel's contract manufacturing.
- Nvidia is also evaluating Intel's manufacturing for future designs.
Google parent Alphabet has reportedly selected Intel as a manufacturing partner for a substantial order of tensor processing units (TPUs). The reported deal involves more than 3 million TPUs scheduled for production in 2028, according to sources familiar with the discussions.
This agreement would mark a significant achievement for Intel's contract manufacturing division as it strives to regain prominence in advanced semiconductor fabrication. The news prompted a more than 9% increase in Intel's share price. There are also indications that Nvidia is evaluating Intel's manufacturing technology for a future processor design, though no firm order has been placed.
The potential collaboration underscores a broader industry trend where major AI companies are seeking to diversify their supply chains beyond Taiwan Semiconductor Manufacturing Co. The escalating demand for AI chips has strained existing production capacities, driving technology firms to explore additional manufacturing partners. This move by Google could bolster its strategy to reduce dependence on Nvidia's GPUs and enhance its cloud business's competitive edge.
