Get 40% Off
🚀 AI-picked stocks soar in May. PRFT is +55%—in just 16 days! Don’t miss June’s top picks.Unlock full list

New Google and Intel Chips Spark Investor Interest; Nvidia Shares Tumble

Published 04/10/2024, 01:11 AM

Google (NASDAQ:GOOG) is stepping up its competition with Nvidia in the artificial intelligence (AI) chip market by developing custom hardware solutions.

Google has unveiled a new lineup of custom chips designed to bolster its position in the rapidly evolving artificial intelligence (AI) market. The tech giant introduced the Tensor Processing Units (TPUs) and an Arm-based central processing unit (CPU) named Axion, showcasing its commitment to innovate in AI hardware.

While the TPUs offer a competitive alternative to Nvidia’s AI chips, they are exclusively accessible through Google Cloud and unavailable for direct purchase. This strategy allows Google to control its proprietary technology while providing customers cutting-edge AI capabilities through its cloud services.

Google Reveals New Axion CPU, Intel Announces New AI Chip

Google’s Axion CPU promises superior performance compared to x86 chips and general-purpose Arm chips in the cloud. The company has engineered Axion to facilitate easy migration of existing workloads to the Arm architecture, enabling seamless adoption without the need for extensive app rewrites or architectural changes.

The introduction of custom chips for data centers aligns with similar efforts by Amazon (NASDAQ:AMZN) and Microsoft (NASDAQ:MSFT), signaling a differentiation trend in cloud computing services. While Broadcom (NASDAQ:AVGO) collaborated with Google on previous TPU generations, the company did not disclose specifics about partnerships for Axion or the new TPU version.

The new TPU, dubbed v5p, can run in configurations of up to 8,960 chips, doubling the performance of its predecessor. It also features liquid cooling for optimal operation. Google claims that Axion outperforms general-purpose Arm chips by 30% and current-generation x86 chips by 50%.

Intel Corp (NASDAQ:INTC) also announced a new artificial intelligence chip called “Gaudi 3” which claims to run AI models one-and-a-half times faster than Nvidia’s flagship H100 GPUs.

Nvidia Shares Tumble Post Google’s AI Chip Announcement

Google is stepping up its competition with Nvidia in the artificial intelligence (AI) chip market by developing custom hardware solutions.

Google’s parent company, Alphabet (NASDAQ:GOOGL), saw its stock price rise by $0.91 (+0.58%) to $157.05, demonstrating a positive trend amidst the news of its AI chip advancements. In contrast, Nvidia Corporation (NASDAQ:NVDA), the major player in the AI chip market, experienced a significant drop of $33.04 (-3.79%) to $838.29 today.


Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our website policy prior to making financial decisions.

This article was originally published on The Tokenist. Check out The Tokenist’s free newsletter, Five Minute Finance, for weekly analysis of the biggest trends in finance and technology.

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.