Google plans to team up with MediaTek for its next AI chip

According to a report from The Information on Monday, Google is poised to collaborate with Taiwan’s MediaTek to create the next generation of its AI chips, Tensor Processing Units (TPUs), anticipated to be released next year. This action will signify a change in Google’s chip approach, although it will not break its relationship with Broadcom, the firm it has partnered with exclusively for AI chip development in recent years.

According to The Information, Google might be transitioning to MediaTek due to its lower per-chip expenses compared to Broadcom and its robust collaboration with TSMC (Taiwan Semiconductor Manufacturing Company).

Alongside collaborating with MediaTek, Google develops its own AI server chips for internal research and development, which are also offered to cloud clients. This approach allows Google to remain competitive in the AI sector by decreasing its dependence on Nvidia, the leading force in the chip market. This is particularly crucial since rivals such as OpenAI and Meta have experienced strong demand for Nvidia chips.

Last year, Google introduced its sixth-generation TPU, providing an alternative to Nvidia chips for both itself and its Cloud customers. As stated, the reason for selecting MediaTek is its solid collaboration with TSMC, a leading chip maker, and its capacity to supply chips at a lower price than Broadcom. Research company Omdia indicates that Google invested between $6 billion and $9 billion on TPUs last year, aligning with Broadcom’s revenue goals for AI semiconductors.

In a similar matter, Google is contemplating partnering with Apple to launch Rich Communication Services (RCS) messaging for Indian mobile phone users this year. The collaboration might expand Apple’s unique blue bubble messaging, which is presently limited to iPhone users, to Android devices. This change is anticipated to shake up India’s business communication environment, which has primarily been controlled by conventional SMS, as WhatsApp rapidly increases its presence.

The integration of backend systems among telecom firms, Apple, and Google is anticipated to have no effect on the user experience. RCS messages will continue to function using mobile data or Wi-Fi, similar to conventional SMS. Nonetheless, this partnership could greatly affect A2P (application-to-person) messaging, an essential medium utilized by businesses like banks and e-commerce firms for official communications.