Key Moments
- Google has reportedly lined up an order exceeding three million tensor processing units from Intel for 2028 production.
- Nvidia is assessing Intel’s ability to manufacture a processor that links four graphics chips into a single package but has not placed an order.
- Intel shares climbed more than 13% in premarket trading after reports of the Google deal and broader AI manufacturing interest.
Google Moves to Secure AI Capacity
Investing.com – Google has reportedly committed to purchasing more than three million tensor processing units (TPUs) from Intel for production in 2028, according to a report from The Information released Monday. The article, which cited individuals described as having direct knowledge of talks between Alphabet’s Google and Intel, pointed to a significant long-term collaboration around specialized artificial intelligence chips.
Nvidia Tests Intel’s Manufacturing Capabilities
The same report indicated that Nvidia has been examining whether Intel’s technology can support a processor design that integrates four graphics chips into a single unit. While Nvidia has been evaluating this potential manufacturing option, the company has not yet moved forward with any formal chip orders from Intel.
Market Reaction and Related AI Chip Plans
Following the report, Intel’s stock price gained more than 13% in premarket trading Monday, reflecting investor enthusiasm around the potential for expanded AI-related manufacturing business.
The article also noted that Tesla CEO Elon Musk said in April that the electric vehicle company plans to use Intel’s next-generation 14A manufacturing process to produce chips at its Terafab initiative. Musk has characterized Terafab as an advanced AI chip complex located in Austin.
AI Chip Developments at a Glance
| Company | Counterparty | Focus | Status |
|---|---|---|---|
| Google (Alphabet) | Intel | More than 3 million TPUs for AI workloads | Order reportedly placed for 2028 production |
| Nvidia | Intel | Processor combining four graphics chips into one unit | Technology under evaluation, no order yet |
| Tesla | Intel | Chips using Intel’s next-generation 14A process at Terafab | Plan described by Elon Musk in April |
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