Key insights
- Google's reported order of 3 million AI chips from Intel for 2028 production, alongside Tesla's potential use of Intel's manufacturing process, signals increasing competition and diversification in the AI chip supply chain. This could benefit Intel by reducing its reliance on Nvidia and potentially impacting Nvidia's market share. While not an immediate impact, it suggests a shift in strategic sourcing for major tech players, potentially leading to greater price competition and innovation in the AI hardware space.
Investing.com -- Google has reportedly ordered more than three million tensor processing units from Intel for production in 2028, The Information reported Monday. The report cited people with direct knowledge of the discussions between Alphabet's Google and Intel.
Nvidia has been evaluating whether Intel's technology can produce a processor that combines four graphics chips into a single unit, according to the report. The chipmaker has not yet placed an order with Intel.
Intel's shares rose more than 13% in premarket trading Monday.
Tesla CEO Elon Musk said in April that the electric vehicle maker plans to use Intel's next-generation 14A manufacturing process to make chips at its Terafab project. Musk has described the project as an advanced AI chip complex in Austin.