By Rajwa Quasim
Alphabet, Google’s parent company, is reportedly developing a new server chip designed to help its Gemini AI models run far more efficiently.
The chip, internally known as “Frozen v2”, is expected to arrive in 2028. According to TechCrunch, the new chip is expected to be six to 10 times more power efficient than Google’s current chips when measured by how many tokens it can generate for each unit of energy used.
READ: Google eyes Samsung for future AI chips (June 11, 2026)
The new chip is also expected to address the issue of AI computing capacity crunch that had fueled internal tensions and prompted Google Cloud to decline deals with outside customers. The “Frozen” project is aimed at creating a new set of homegrown chips apart from Google’s tensor processing units (TPUs) rather than replacing them.
Bloomberg News reported last week that Google delayed the launch of its latest Gemini AI model after it fell short of internal goals, with the company working to improve its capabilities, particularly in coding.
“Our teams are constantly researching and experimenting with new innovations to deliver maximum performance and efficiency for our users and customers,” Google told TechCrunch. “While not every project moves into production, this rigorous exploration is central to our full stack approach. By co-designing our hardware and software from the ground up, we ensure our systems are integrated and highly optimized for real-world workloads.”
READ: Google in the talks with Marvell for AI chip design (April 20, 2026)
This development reflects a wider shift seen across industries where companies are building their own chips and reducing dependence on Nvidia which has dominated the AI chip supply for years now. Nvidia has now formed partnerships with Japanese industrial giants. Open AI released its first custom chip, called Jalapeño, designed and manufactured in collaboration with Broadcom.
Alphabet has faced pressure from investors over its enormous AI spending. The company has projected spending up to $180-$190 billion. The Alphabet’s stock rose about 3% on Monday, which gave the company a positive, momentum ahead of its earnings report release later this week.