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THE BIZNOB – Global Business & Financial News – A Business Journal – Focus On Business Leaders, Technology – Enterpeneurship – Finance – Economy – Politics & LifestyleTHE BIZNOB – Global Business & Financial News – A Business Journal – Focus On Business Leaders, Technology – Enterpeneurship – Finance – Economy – Politics & Lifestyle

Technology

Technology

Google discussed dropping Broadcom as an AI chip supplier

A smartphone with a displayed Broadcom logo is placed on a computer motherboard in this illustration
A smartphone with a displayed Broadcom logo is placed on a computer motherboard in this illustration... A smartphone with a displayed Broadcom logo is placed on a computer motherboard in this illustration taken March 6, 2023. REUTERS/Dado Ruvic/Illustration/File Photo
A smartphone with a displayed Broadcom logo is placed on a computer motherboard in this illustration
A smartphone with a displayed Broadcom logo is placed on a computer motherboard in this illustration... A smartphone with a displayed Broadcom logo is placed on a computer motherboard in this illustration taken March 6, 2023. REUTERS/Dado Ruvic/Illustration/File Photo

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Google discussed dropping Broadcom as an AI chip supplier. The Information said Thursday that GOOGL.O, owned by Alphabet Google executives, has considered removing Broadcom (AVGO.O) as an AI chip supplier as early as 2027.

According to the article, if that happens, Google would design tensor processing units (TPUs) in-house. Executives set a target earlier this year to scrap Broadcom over the chips’ price. The Information reported that Google and Marvell Technology (MRVL.O) will debut Granite Redux, an upgraded networking chip, next year.

Google, Broadcom, and Marvell didn’t respond to Reuters’ request for comment. Broadcom slumped 3.7% premarket.

According to recent reports, Google is considering abandoning Broadcom as its AI chip supplier. A decision like this has major consequences and deserves greater examination.

Google’s reassessment is driven by technology compatibility. Google’s expanding AI demands require strong, custom CPUs. This imbalance could slow the company’s AI projects.

Today, supply chain reliability is crucial. The recent semiconductor production interruptions and shortages have caused corporations to rethink their supplier agreements. Google must keep AI processors on hand to run its operations.

Economic variables are also crucial to this decision. AI chip procurement must be cost-effective. Thus, Google must compare Broadcom’s benefits against alternative suppliers’ savings.

Google leaving Broadcom might affect AI initiatives and schedules. A good replacement and a smooth transfer are complex tasks that Google must plan and execute.

However, ending the Google collaboration might hurt Broadcom. It may force the corporation to rethink its strategy and semiconductor market position.

In conclusion, Google’s likely move to drop Broadcom as its AI chip supplier highlights the complexity of managing AI chip ecosystems for tech giants. Before deciding, Google must examine pricing, supply chain stability, and technological compatibility.

Although the outcome is unknown, it will impact Google, Broadcom, and the tech industry. This shows how the tech landscape is always changing and how strategic decisions can affect enterprises and industries.


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