Google $GOOGL is reportedly considering to stop using Broadcom $AVGO as an AI chip supplier from 2027. In such a scenario, Google would completely design the chips known as TPUs in-house. The move could save billions of dollars in costs annually. What do you think? 🤔
A community member's personal view, not investment advice. Community Guidelines
MD
Interesting information, it's a long way off but it will pass like water.
AA
If it works out, it could be very interesting, but if it's like the beginning with Samsung, I don't know...
YE
If I understand correctly TPU is a competitor for Nvidia GPUs. For the Google cloud they are better suited for some simpler operations and have lower power consumption, so this along with cutting out AVGO could save decent money and hopefully keep their cloud in profit for good. I'm just very curious how TSMC will react to this trend when a lot of those big players want to rip off designers and probably so the demands on manufacturing capacity, logistics and administration will grow.
NG
If they have the capacity, why not. The money saved will definitely come in handy, I wouldn't be angry for buybacks either 😄