Alphabet’s Google has placed an order with Intel to manufacture more than three million of its in-house artificial intelligence chips in 2028, The Information reported Monday, citing people with direct knowledge of the discussions.
The chips, known as tensor processing units, or TPUs, are custom processors developed by Google for AI workloads and are central to the company’s effort to reduce reliance on outside chip suppliers as demand for artificial intelligence computing continues to surge.
The report said Nvidia has not yet placed an order with Intel but is evaluating the company’s advanced packaging technology and its 18A manufacturing process for future chips. According to The Information, Nvidia is considering whether Intel’s technology could be used to produce a processor that combines four graphics chips into a single unit.
Intel shares jumped more than 13% in premarket trading following the report, which offered another sign that the company’s long-running effort to rebuild its manufacturing business may be gaining traction.
Alphabet, Intel and Nvidia did not immediately respond to Reuters requests for comment. Reuters said it could not independently verify the report.
The development comes after years in which Intel lost ground in advanced chip manufacturing to Taiwan Semiconductor Manufacturing Co., the world’s leading contract chipmaker. Intel has been seeking to revive its foundry business by attracting major outside customers for its next-generation manufacturing processes.
The Information’s report also follows comments by Tesla CEO Elon Musk in April that the electric vehicle maker plans to use Intel’s next-generation 14A manufacturing process to make chips at its Terafab project, an advanced AI chip complex Musk has envisioned in Austin, Texas.