A cloud provider the size of Google can justify developing its own components for its computing infrastructure, so the company has long been developing its own line of server-grade processors. Until now, Google’s main partner in this area has been Broadcom, but MediaTek may join it in the next generation.
Image source: Google
The Reuters agency reported this the day before, citing The Information. Cooperation with MediaTek does not mean breaking off relations with Broadcom. Google will present the first fruits of cooperation with MediaTek next year, and one of the benefits pursued within the framework of this alliance is cost savings on the production of corresponding chips. As reported, MediaTek enjoys lower tariffs for the production of its chips at TSMC facilities than Broadcom, so Google hopes to achieve proportional savings in the new generation of its own solutions.
Omdia estimates that Google spent between $6 billion and $9 billion on its Tensor processors last year, based on Broadcom’s revenue from selling AI components. Even if Google’s partnership with MediaTek saves a little on each chip it produces, the overall economic benefit could be significant.