By Anhata Rooprai
Aug 19 (Reuters) - Marvell Technology will help develop Google's in-demand custom chips and has offered the search giant the right to buy a potential $12.2 billion stake, the latest deal in which Big Tech is investing in the suppliers powering its AI build-out.
Shares of the chipmaker jumped nearly 8% as the deal marked a major vote of confidence from a top cloud-computing provider and could bring roughly $120 billion in revenue through fiscal 2033, if Google hits the targets its stake option depends on.
Larger rival Broadcom, which had been Google's main custom chip partner so far, fell more than 5%, while shares in Google-parent Alphabet were little changed.
Demand for in-house chips such as Google's tensor processing units (TPUs) has surged as companies seek cheaper alternatives to Nvidia's pricey graphics processors and technologies better suited for inference, the process of running trained AI models.
#Google #billion #stake #rooprai
Aug 19 (Reuters) - Marvell Technology will help develop Google's in-demand custom chips and has offered the search giant the right to buy a potential $12.2 billion stake, the latest deal in which Big Tech is investing in the suppliers powering its AI build-out.
Shares of the chipmaker jumped nearly 8% as the deal marked a major vote of confidence from a top cloud-computing provider and could bring roughly $120 billion in revenue through fiscal 2033, if Google hits the targets its stake option depends on.
Larger rival Broadcom, which had been Google's main custom chip partner so far, fell more than 5%, while shares in Google-parent Alphabet were little changed.
Demand for in-house chips such as Google's tensor processing units (TPUs) has surged as companies seek cheaper alternatives to Nvidia's pricey graphics processors and technologies better suited for inference, the process of running trained AI models.
#Google #billion #stake #rooprai
8 hours ago
