Additionally, Google is investing $75 billion in CapEx for 2025 with about half of the capital going towards the cloud business
By Ada Jain
Google is preparing to partner with Taiwan’s MediaTek on the next version of its AI chips or Tensor Processing Units (TPUs) next year, marking a shift in its AI chip strategy. The news was first reported by The Information on Monday, citing internal sources.
Google, which has previously worked exclusively with Broadcom on its AI chips, is not severing ties with the company but is allegedly adding a new partner. The decision to involve MediaTek was reportedly influenced by the Taiwanese firm’s established ties with Taiwan Semiconductor Manufacturing Company (TSMC) and its lower pricing compared to Broadcom.
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Tensor Processing Units (TPUs) are Google’s custom-designed AI accelerators, optimized for training and inference of large AI models, and are offered as a scalable, cloud-based service to make powerful AI capabilities accessible to developers and data scientists.
Massive AI infrastructure investments are the new normal in cloud. In late 2024, Google rolled out its sixth-generation TPU in a bid to give itself and its Cloud customers an alternative to Nvidia’s chips, which are the most sought-after processors in the industry.
Google invests $75 billion in CapEx
Additionally, Google is investing $75 billion in CapEx for 2025 with about half of the capital going towards the cloud business. Sundar Pichai, CEO at Google said in a statement from February, “We develop every component of our technology stack, including hardware, compilers, models and products,” he said. “This approach allows us to drive efficiencies at every level from training and serving to developer productivity.”
This move would reduce reliance on Nvidia manufactured chips even as rivals like Microsoft-backed OpenAI and Meta Platforms have seen a surge in demand for Nvidia chips.
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In 2024, Google reportedly spent between $6 billion and $9 billion on TPUs. However, it still remains one of Nvidia’s biggest customers, having placed orders exceeding $10 billion for the company’s top-tier Blackwell AI chips.
NVIDIA still faces mounting pressure to deliver groundbreaking announcements at GTC (Global Artificial Intelligence Conference) 2025 currently happening in San Jose, California, from March 17 till March 21.