Google clarifies that the relationship with Broadcom has not changed
Amidst myriad media reports suggesting a potential end to the collaboration between Google and Broadcom in the production of TPU components by 2027, leading to a decline in Broadcom’s stock value, Google recently emphasized that its partnership with Broadcom remains unchanged.
Recent speculations suggest that Google might conclude its TPU component collaboration with Broadcom by 2027 at the earliest, possibly transitioning the partnership to Marvell, with anticipations of producing a computational component codenamed ‘Granite Redux.’ Nevertheless, Google later clarified that its alliance with Broadcom has not been disrupted.
Historically, Broadcom assisted Google in manufacturing TPU components tailored for Google Cloud services. Simultaneously, Broadcom facilitated Meta in crafting bespoke artificial intelligence computational components, reaping significant profits amidst the burgeoning AI computational wave. Moreover, Broadcom is poised to finalize its acquisition of VMware, aiming to expand its strategic footprint in AI computational advancements.
As Microsoft fortifies its alliance with OpenAI, intensifying its endeavors in AI computational expansion, Google too declared its intent to bolster its AI application framework this year. Thus, heightened investment in the research and development of components like TPUs is anticipated, ensuring an edge in the competitive AI landscape. Capitalizing on the AI wave, Broadcom’s CEO, Fu-Yang Chen, foresees that by 2024, products related to AI applications will constitute approximately 25% of the revenue from its processor products.