Google is reportedly considering shifting its TPU (Tensor Processing Unit) production partnership from Broadcom to MediaTek as part of a cost optimization strategy. MediaTek would focus on the design of input/output (I/O) modules while Google would enhance its in-house TPU design capabilities. This change could help Google reduce its dependency on Broadcom in the increasingly competitive AI market. AI applications are highly demanding in terms of computation, necessitating powerful processing units.
Google’s Gemini chatbot and various AI tools are mainly accessible for free, with only a few premium features available for a fee. This scenario makes it prudent for Google to seek ways to lower costs associated with its processing needs. Reports suggest that after relying on Broadcom for nearly a decade, Google may now explore a partnership with MediaTek to address its TPU production needs. Since 2015, Google has utilized Broadcom’s TPUs for its AI operations, transitioning through various generations of the technology.
Despite recent advancements, a report indicates that the next generation of TPUs, arriving in 2025, could be the last exclusively produced by Broadcom. MediaTek’s potential partnership is appealing due to cost advantages, making it a strategic move as competitors like OpenAI grab NVIDIA chips for their AI applications. The collaboration would see MediaTek mainly involved in I/O module design, while Google handles most TPU designs internally. This approach marks a significant shift for the tech giant, which has historically relied on Broadcom for extensive support.
Moreover, Google is actively seeking engineering talent in Taiwan to bolster its internal chip design capabilities. Although the effects on consumer-facing AI applications are expected to be minimal, reducing reliance on Broadcom may provide Google with a competitive edge as demands for AI compute capabilities continue to escalate. Despite this shift, Broadcom maintains a robust client base, suggesting its market position remains strong even if Google becomes less dependent on its services.
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