Alphabet's (GOOGL, GOOG) Google is one of the biggest buyers of Nvidia's (NVDA) AI server chips, but it has also been expanding its in-house AI chip business in a move that could challenge Nvidia's dominance, The Information reported Monday, citing people familiar with the matter.
Google has begun pitching its tensor processing units to small cloud providers, or neoclouds, that have primarily built facilities to rent out Nvidia graphics processing units, according to the report.
Google has also discussed financially backing TPU data centers developed by neoclouds to help fund chip and equipment purchases, while offering to lease back the TPUs for its own AI development, Google Search and advertising, or to rent them to Google Cloud customers, the report added.
Alphabet and Nvidia did not immediately respond to a request for comment by MT Newswires.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)
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