(Reuters) -Alphabet-owned Google has mentioned dropping Broadcom as a provider of synthetic intelligence (AI) chips as early as 2027, The Info reported on Thursday, sending Broadcom shares down 5% in premarket buying and selling.
If that occurs, Google will design the chips – referred to as tensor processing items – in-house, the report stated, including that executives set a aim earlier this yr to ditch Broadcom following a standoff between the businesses over the worth Broadcom was charging for the chips.
Broadcom CEO Hock Tan lately stated that generative AI might account for greater than 25% of the corporate’s semiconductor income subsequent yr.
Google has intensified investments in generative AI this yr because it performs catch-up after Microsoft-backed OpenAI’s launch of ChatGPT final yr took the tech world by storm.
The Info additionally stated that Google has been working since final yr to switch Broadcom with chipmaker Marvell Know-how for a sophisticated chip internally code-named Granite Redux.
Google, Broadcom and Marvell did not instantly reply to a Reuters request for remark.
(Reporting by Kanjyik Ghosh in Bengaluru; Enhancing by Savio D’Souza and Nivedita Bhattacharjee)
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