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Google Parent Alphabet Designs New “Frozen v2” AI Chip

Prime Highlights 

  • Alphabet’s new “Frozen v2” chip could be up to 10 times more power-efficient than current chips.  
  • Google’s stock rose about 3% following news of the chip development.  

Key Facts 

  • Alphabet is the parent company of Google and developer of the Gemini AI models.  
  • Alphabet has signalled plans to spend between $180 billion and $190 billion on AI buildout.  

Background 

Alphabet, the parent company of Google, is working on a fresh server CPU, according to sources. The idea is that it will boost the overall performance of its Gemini servers. 

Code-named “Frozen v2,” the chip is expected to become available in 2028. It could be six to 10 times more efficient than Google’s existing AI chips, measured by the number of tokens generated per unit of power, the report said. 

Google did not directly confirm or deny the report. In order to offer their users and customers the highest level of performance and efficiency, the company claims that its teams constantly seek out innovation. While not all of their projects go into production, this type of research is absolutely vital to the firm’s approach to hardware and software co-design to ensure peak performance in practice. 

AI companies have increasingly pursued their own chips to run in-house models more efficiently and address global shortages in AI computing capacity. Efficiency has become a key selling point as concerns over AI spending have cooled investor enthusiasm across the industry. Firms are also working to reduce dependence on chipmaker Nvidia, which has long dominated the AI chip market. 

Last month, OpenAI unveiled its first custom chip, an inference processor. Anthropic and Samsung were reportedly in talks on a potential chipmaking collaboration earlier this month. 

Investors had previously raised concerns about Alphabet’s massive planned AI spending, with the company earlier signalling plans to spend between $180 billion and $190 billion. News of the more efficient chip appears to have reassured investors, with Alphabet’s stock climbing around 3% this week ahead of its upcoming earnings report.