MOUNTAIN VIEW (dpa-AFX) - Tech major Google, owned by Alphabet Inc. (GOOG), had discussions to drop Broadcom Inc. (AVGO) as its AI chip supplier as early as 2027, over a pricing dispute, The Information reported.
If this plan goes through, then Google will design the chips known as tensor processing units in-house.
Broadcom is likely to be replaced by Marvell Technology (MRVL), which will develop chips known internally as 'Granite Redux' to ramp up its AI investments.
In pre-market activity, shares of Broadcom are trading at $778.87 down 6.22% and shares of Alphabet are trading at $132.83 down 1.31% on Nasdaq.
Marvell is trading at $54.75 up 3.42%.
With the move, Google expects to save billions of dollars in costs annually, and to win back market share lost to Microsoft (MSFT) earlier this year, the report said.
Copyright(c) 2023 RTTNews.com. All Rights Reserved
Copyright RTT News/dpa-AFX
© 2023 AFX News
