Alphabet Inc. (GOOGL) is in talks with Marvell Technology (MRVL) to design new chips that can run AI models better, based on a report from The Information. The move shows that big tech firms are now focused on the next phase of AI: running models at scale in real time. In particular, this move signals a shift from relying on Broadcom (AVGO), which helped to design previous TPUs for Alphabet.
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Trade NVDA with leverageThe plan includes two chip types. One is a memory unit that will help move data faster. The other is a new version of Google’s TPU designed for AI use in live apps. These chips are meant to work side by side, with each one handling a different part of the task.
As the report notes, “the current discussions aim at designing semiconductors exclusively for Google’s needs.”
Meanwhile, GOOGL shares rose 1.68% on Friday, closing at $341.68.
A Shift Toward AI Inference
To start, the chip race is now moving past training and into inference. This is the stage where AI tools are used in real apps like chat, search, and agents. These tasks need a fast response time and smart use of memory.
As a result, firms are now building chips that can split the work. Some steps need more power, while others need fast data flow. By using more than one chip, firms can cut costs and boost speed.
For example, Nvidia Corporation (NVDA) has rolled out a new chip to target this trend. At the same time, other firms are also working on custom chips to match their own needs.
Less Reliance on Broadcom
At the same time, Google is trying to shift away from Broadcom Inc. (AVGO), which has long helped design its TPU chips. Broadcom charges a fee for each chip made, and that cost can rise fast as use grows.
So far, Google has brought in other partners, such as MediaTek. Now, Marvell could take on a larger role given its past work in memory chips and AI tools.
Still, Broadcom remains key to Google’s plans. The two firms signed a deal this month to keep working on new chips through 2031, which shows that this is a shift, not a full break.
In short, Google is building a more mixed chip base. That may help it cut costs, boost speed, and keep pace in the fast AI race.
Is Google Stock a Buy, Sell, or Hold?
Turning to the Street, Alphabet boasts a Strong Buy consensus view. Of 31 ratings issued, 26 analysts rate it a Buy, while five analysts rate it a Hold. The average GOOGL stock price target is $385.97, implying a 12.96% upside from the current price.
