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Broadcom, Google Formalize AI Chip Development Deal Through 2031

BusinessBroadcom, Google Formalize AI Chip Development Deal Through 2031

Broadcom Inc. announced on Monday a long-term agreement with Google to develop and supply custom chips for artificial intelligence infrastructure. The deal, which extends through 2031, formalizes the companies’ collaboration on future generations of Google’s Tensor Processing Units (TPUs) used in its data centers.

The agreement outlines that Broadcom will continue to provide design and supply services for Google’s custom TPUs. These chips are a type of application-specific integrated circuit (ASIC) designed by Google to accelerate machine learning workloads that power services including Google Search, YouTube, and Google Cloud.

In a statement, Broadcom confirmed the multi-year agreement would involve supplying Google with its “latest and next generations of custom-designed Tensor Processing Units.” The announcement did not include specific financial terms of the arrangement.

The deal extends an existing business relationship between the two technology companies. Broadcom has served as a key partner in developing and supplying components for Google’s TPUs for several years, a collaboration that Broadcom CEO Hock Tan has previously identified as a significant part of the company’s custom silicon business.

The agreement comes as other large technology firms, such as Amazon and Microsoft, also pursue the development of their own custom chips. This industry practice allows companies to create hardware specifically optimized for their software and services, particularly for the computational demands of large-scale AI models.

Broadcom, a global technology company that designs and supplies a broad range of semiconductor and infrastructure software products, will continue its role in the supply chain for Google’s proprietary AI hardware. The TPUs are a component of the company’s global cloud infrastructure.

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