Alphabet, the parent company of Google, is working on a new server chip designed to improve the efficiency of its in-house Gemini artificial intelligence models.
The chip, which goes by the internal name Frozen v2, is expected to launch sometime in 2028. That information comes from The Information, which cited anonymous sources familiar with the project. According to the report, Frozen v2 could be between six and 10 times more efficient than Google's existing AI chips when measured by the number of tokens generated per unit of power.
When asked about the report, Google did not directly confirm or deny it. The company provided a statement to TechCrunch saying its teams are always researching and testing new ideas to deliver better performance and efficiency for users and customers. Google added that not every project makes it to production, but this kind of exploration is central to its full stack approach. The company emphasized that by designing hardware and software together from the ground up, it can ensure systems are integrated and highly optimized for real world workloads.
AI Companies Push for Custom Chips
AI companies have increasingly turned to building their own chips as a way to make their models run more efficiently and to address global shortages in AI computing capacity. Efficiency has become a key selling point for tech firms as concerns about AI spending have cooled some of the market excitement that previously surrounded the industry. At the same time, companies are trying to reduce their dependence on Nvidia, which has long dominated the AI chip market and left many major AI developers reliant on its hardware.
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In June, OpenAI announced its first custom chip, an inference processor called Jalapeño. Earlier this month, reports emerged that Anthropic was in talks with Samsung about a new chipmaking partnership.
Investor Sentiment and Spending
Investors have previously expressed concerns about Alphabet's massive planned expenditures to support its AI strategy. Earlier this year, Google said it plans to spend between $180 billion and $190 billion. With that much money on the line, the company needs to show that those investments will pay off.
News of the more efficient Frozen v2 chip appears to have calmed investor worries, giving Google a boost ahead of its earnings report later this week. After The Information's report was published, the company's stock rose about 3% on Monday morning.