March 17 - Alphabet Inc. (GOOG, Financial) is set to partner with Taiwan-based MediaTek to develop next-generation tensor processing unit (TPU) processors for artificial intelligence, according to a report. The move aims to cut costs on AI chip production.
MediaTek, leveraging its strong relationship with Taiwan Semiconductor (TSM, Financial), could begin manufacturing the new processors as early as next year, insiders said. This development marks a strategic pivot from Alphabet's traditional reliance on Broadcom (AVGO, Financial) for its TPU development.
By working with MediaTek, Alphabet will make it easier and cheaper to manufacture semiconductors and solidify its position at the leading edge of AI innovation. The analysts predict the partnership to set a pace for cost efficient chip development.
