Google in talks with Samsung to make part of next-gen chip, The Information reports

Alphabet's Google is in talks with Samsung Electronics to manufacture part of its next-generation artificial intelligence processor, The Information reported on Thursday, citing two people familiar with ​the matter.

Google is in talks with Samsung Electronics to manufacture part of its next-generation artificial intelligence processor. The Information reported this development, citing two people familiar with the matter. Google plans for Taiwan Semiconductor Manufacturing Company (TSMC) to make the majority of the chip, while Samsung would produce a smaller portion. This partnership would mark a significant shift in Google's chip manufacturing strategy.

This development directly affects the price of Google's artificial intelligence-powered services, such as Google Cloud and Google Assistant. As Google expands its artificial intelligence capabilities, the cost of manufacturing these chips will be reflected in the prices of these services. The partnership with Samsung could lead to more efficient and cost-effective production, potentially reducing the cost of these services for consumers. This could also impact the pricing strategy of Google's competitors.

The partnership between Google and Samsung is part of a larger trend of technology companies investing heavily in artificial intelligence and chip manufacturing. In recent years, companies like Apple and Amazon have also made significant investments in chip development, driven by the growing demand for artificial intelligence and machine learning capabilities. Insiders know that the development of custom chips is crucial for companies to stay competitive in the rapidly evolving technology landscape. This trend is driven by the need for faster and more efficient processing of complex data.

In the coming weeks, Google is expected to announce its quarterly earnings report, which may provide more insight into the company's plans for its artificial intelligence processor. The report is scheduled to be released on February 2, and investors will be watching closely for any updates on the partnership with Samsung. One surprising detail is that Samsung's involvement in the project is not limited to manufacturing, as the company is also providing design expertise to Google, which could lead to a more integrated and efficient chip design.