Alphabet’s Google has reportedly tapped Intel to make millions of AI chips, giving Intel’s foundry dreams a useful pulse.
According to Reuters, said Google has placed an order with Intel for more than three million tensor processing units in 2028.
Nvidia is said to be sniffing around Chipzilla’s technology for a processor that combines four graphics chips into a single unit. It has not placed an order with Intel yet, which keeps the champagne corks safely in the fridge.
Chipzilla’s shares rose more than nine per cent in early trading on the news. That added to a nearly 169 per cent gain so far this year, helped by signs of progress under Intel chief executive Tan Lip-Bu.
A Google order would boost Intel’s contract chipmaking business as it tries to regain credibility with Taiwan Semiconductor Manufacturing Company. Chipzilla lost its manufacturing crown to TSMC after years of management blunders, delays and assorted executive clown shoes.
AI demand has left TSMC struggling to keep up, prompting major chip designers to seek spare capacity elsewhere.
EMarketer technology analyst Jacob Bourne said the news is “evidence that AI’s biggest players are racing to diversify a supply chain still heavily concentrated in TSMC”.
Since Tan took charge, Chipzilla has secured billions of US dollars from the Trump administration, Nvidia and SoftBank.
It has landed Tesla as the first major customer for its next-generation 14A process for Elon Musk’s Terafab project in Austin. An official said last month that the Trump administration has been trying to drum up business for Intel.
DA Davidson analyst Gil Luria said Google and Nvidia had more reasons than usual to work with Intel.
“Beyond the standard need to diversify, Google and Nvidia are even more motivated than usual to work with Intel. Supporting Intel supports US-based manufacturing, which is important for the relationship with the US administration,” Luria said.
