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Tech14 hr ago

Alphabet Shares Jump on Report of New Efficient AI Chip

By TrendingWire Newsroom

Shares of Alphabet, the parent company of Google, rose on Tuesday following a report that the company is developing a new artificial intelligence chip. The chip, reportedly named 'Frozen v2,' is said to embed parts of Google's Gemini AI model directly into the silicon, making it more efficient for AI tasks. The report, which did not name a source, suggests that Alphabet is aiming to reduce its reliance on external chip suppliers and improve performance for its AI services. The move comes as tech giants race to build specialized hardware to handle the growing demand for AI computing power. Alphabet has invested heavily in AI through its Google DeepMind division and the development of the Gemini model. The company already produces its own Tensor Processing Units (TPUs) for data centers, but the Frozen v2 chip would represent a further step toward custom-designed silicon. The stock rose about 3% in morning trading, adding to gains this year. Analysts note that better chip efficiency could lower costs and improve the speed of AI applications, giving Alphabet a competitive edge. Neither Alphabet nor Google has officially confirmed the report. The company typically does not comment on rumors or speculation about future products.

Sources: CNBC
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