Google Just Went All in on Its Deal With Intel
Written by Danny Vena for The Motley Fool -> Alphabet has been wildly successful with its custom-built Tensor Processing Units (TPUs). The company is tapping Intel to help keep up with the unrelenting demand for AI. Google's backlog is a monument to its future opportunity, whi
Alphabet has been wildly successful with its custom-built Tensor Processing Units (TPUs).
The company is tapping Intel to help keep up with the unrelenting demand for AI.
Google's backlog is a monument to its future opportunity, while its stock is selling for a song.
One of the key tenets of Alphabet 's (NASDAQ:GOOGL) (NASDAQ:GOOG) artificial intelligence (AI) strategy has long been the company's custom-built semiconductors. The Google parent first developed its Tensor Processing Units (TPUs) more than a decade ago, and these custom processors were "purpose-built specifically for AI," according to the company, becoming a key part of its strategic advantage.
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These application-specific integrated circuits (ASICs) are "a chip designed for a single, specific purpose," according to Google: providing the computational horsepower for "running the unique matrix and vector-based mathematics that's needed for building and running AI models."
Alphabet's latest move turned heads, and the company appears to be going all-in on its deal with Intel (NASDAQ:INTC) .
Intel and Alphabet have been collaborating for years, developing specialized processors for AI , but those chips have been manufactured by Taiwan Semiconductor Manufacturing (TSMC) . However, as the AI boom continues to gain steam, TSMC has been struggling to keep up with the relentless demand. That's where Intel comes in.
