Google Wants To Stop Broadcom As A Supplier Of Artificial Intelligence Chips

Broadcom is a supplier of artificial intelligence chips (AI) for Google. (photo: Twitter @JeremyRossbach)

JAKARTA - Google, which is owned by Alphabet Inc., has been discussing the possibility of discontinuing Broadcom as an artificial intelligence chip supplier (AI) since 2027, The Information reported on Thursday, September 21, which caused Broadcom's shares to fall 5% in pre-market trading.

If that happens, Google will design a chip - known as the tensor processing unit - internally. A report also said that executives had set an early goal this year to stop cooperation with Broadcom following a dispute between the two companies over the prices requested by Broadcom for the chip.

Broadcom CEO Hock Tan recently said that genreative artificial intelligence could account for more than 25% of the company's semiconductor revenue next year.

Google has stepped up investment in generative artificial intelligence this year as an attempt to catch up after the launch of a ChatGPT from OpenAI backed by Microsoft last year kicked off the tech world.

The Information also says that since last year, Google has been working to replace Broadcom with chipmaker Marvell Technology for advanced chips codenamed "Granite Redux".

Google, Broadcom, and Marvell have not responded to requests for comment from the media.