Alphabet shares climbed 3% in Monday trading after reports emerged that the company is developing a new server chip, internally codenamed "Frozen v2," specifically engineered to run its Gemini AI models more efficiently.
The development, first detailed by The Information, suggests Alphabet is moving deeper into custom silicon design to reduce reliance on third-party hardware providers.
5% on reports that it is set to commence manufacturing of its own proprietary AI chip, codenamed "Iris," in September.
The chip reportedly embeds parts of Gemini's architecture directly into the silicon, a move that could significantly lower inference costs and improve performance for the company's large language models.
This strategy mirrors broader trends in the tech sector, where major players are increasingly designing proprietary hardware to support their AI workloads.
Meta Platforms, for instance, recently saw its shares surge nearly 7.5% on reports that it is set to commence manufacturing of its own proprietary AI chip, codenamed "Iris," in September.
The shift toward custom silicon highlights the intensifying competition in the AI infrastructure space.