Google taps Intel to manufacture 3 million AI chips by 2028
Alphabet’s Google has reportedly ordered over three million tensor processing units (TPUs) from Intel for production by 2028, using Intel’s advanced EMIB packaging technology. The deal boosts Intel’s foundry business amid TSMC capacity constraints and aligns with U.S. efforts to domesticate semiconductor manufacturing. Intel shares surged over 11% on the news. The move underscores Google’s strategy to reduce reliance on Nvidia GPUs and diversify AI chip supply.
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Why Intel Stock Rocketed Higher on Thursday
Intel stock surged up to 11.8% on Thursday following a report that Apple has agreed to work with Intel to design and build its chips in America, as revealed by President Trump on Truth Social. The deal, if confirmed, would be a major win for Intel's foundry business under CEO Lip-Bu Tan's turnaround efforts. Additionally, unconfirmed reports suggest Alphabet has ordered 3 million TPUs from Intel for AI operations. Despite the stock's 257% gain in 2026, analysts caution that the valuation is steep at 122 times forward earnings and Intel remains unprofitable. The article also notes that none of the involved companies have officially confirmed Trump's statement.
Yahoo FinanceAlphabet in Talks with Samsung for Manufacturing Next-Gen AI Processors
Alphabet Inc. (GOOGL) is reportedly in discussions with Samsung Electronics to manufacture part of its next-generation AI processor, according to a Reuters report on June 11, 2026. The plan involves a split manufacturing approach: TSMC would produce the main computing component, while Samsung would handle a separate piece connecting the processor to memory, using its advanced 2-nanometer production technology. Alphabet is also working with MediaTek on the design, though mass production is not expected until 2028. This move aims to reduce Google's reliance on TSMC, which is struggling with surging AI demand. Separately, Google is in talks with Intel to manufacture over three million TPUs in 2028, further diversifying its chip supply chain. Google's in-house TPU chips are seen as a credible alternative to Nvidia's processors and are a key growth driver for its cloud business.
Yahoo FinanceAlphabet Places Order with Intel for Over Three Million Tensor Processing Units in 2028
Alphabet Inc. (GOOGL) has placed an order with Intel to manufacture more than three million Tensor Processing Units (TPUs) in 2028, as reported by Reuters citing The Information on June 8, 2026. The order aims to bolster Intel's contract chip manufacturing business amid capacity constraints at Taiwan's TSMC, which have pushed major AI chip designers to seek alternatives. D.A. Davidson analyst Gil Luria noted that Google and Nvidia are motivated to support Intel due to U.S. administration push for domestic manufacturing. Following the report, TD Cowen analyst John Blackledge raised Alphabet's price target to $475 from $450, citing strong Google Cloud growth and expectations for data center capacity to increase more than tenfold from 2022 to 2031. Alphabet reported Q1 FY26 revenue of $109.9 billion, up 22% year-over-year, with Google Cloud revenue surging 63% to $20 billion and operating income tripling to $6.6 billion.
Yahoo FinanceAlphabet Orders Over Three Million Tensor Processing Units from Intel for 2028
Alphabet Inc. (GOOGL) has placed an order with Intel to manufacture more than three million Tensor Processing Units (TPUs) in 2028, according to a Reuters report citing The Information. The order is seen as a boost to Intel's contract chip manufacturing business as it competes with TSMC, whose capacity constraints have pushed AI chip designers to seek alternatives. The news follows strong Q1 2026 results for Alphabet, with total revenue of $109.9 billion (up 22% YoY) and Google Cloud revenue surging 63% to $20 billion. TD Cowen analyst John Blackledge raised Alphabet's price target to $475 from $450, citing expectations for Google's data center capacity to increase more than tenfold from 2022 to 2031. The order aligns with U.S. government push for domestic semiconductor manufacturing.
Yahoo FinanceIntel Shares Soar on Google Deal to Build TPUs
Intel (INTC) shares surged over 11% after securing an order from Alphabet's Google to build three million TPU chips, to be manufactured in 2028. The deal leverages Intel's advanced EMIB packaging technology, which offers high-density die-to-die connectivity and HBM integration, as an alternative to TSMC's constrained CoWoS capacity. Market experts cite diversification from TSMC as a reason, but Intel's packaging capabilities are the core driver. Google's upcoming TPU v8e, scheduled for 2027, is expected to use Intel's EMIB technology, suggesting potential for future orders. INTC stock is up 191.72% year-to-date with a market cap of $554 trillion.
Yahoo FinanceAlphabet reportedly taps Intel to manufacture three million in-house AI chips
According to a report from The Information, Alphabet's Google has placed an order with Intel to manufacture more than three million tensor processing units (TPUs) by 2028. The news boosted Intel's shares by over 9% in early trading, adding to a nearly 169% gain for the year amid a turnaround under CEO Lip-Bu Tan. Nvidia is also evaluating Intel's technology for a combined GPU processor but has not placed an order. The potential deal underscores efforts by major AI companies to diversify chip supply away from TSMC, which is struggling with capacity due to soaring AI demand. Intel has recently secured investments from the Trump administration, Nvidia, and SoftBank, and landed Tesla as a customer for its next-generation 14A process. Google aims to make its TPUs a viable alternative to Nvidia's dominant GPUs, with cloud revenue growth as a key driver.
The Hindu: Latest News today from India and the World, Breaking news, Top Headlines and Trending News Videos.Alphabet Taps Intel to Manufacture Three Million In-House Chips
Alphabet's Google has reportedly contracted Intel to manufacture three million of its in-house chips, marking a significant move in the AI chip market. The deal comes as Intel has secured billions of dollars in investments from the Trump administration, Nvidia, and SoftBank. Google has been actively developing its own AI chips to reduce reliance on Nvidia's dominant GPUs. The report, published by The Business Times on June 9, 2026, highlights the growing competition in the semiconductor industry and the strategic partnerships forming around AI hardware production.
The Business TimesAlphabet Taps Intel to Manufacture Three Million In-House Chips
Alphabet's Google has reportedly selected Intel to manufacture approximately three million of its in-house chips, marking a significant move in the AI chip market. The deal comes as Intel has secured billions of dollars in investments from the Trump administration, Nvidia, and SoftBank. Google has been actively developing its own AI chips to reduce reliance on Nvidia's dominant GPUs. The report, published by The Business Times on June 9, 2026, highlights the growing competition in the semiconductor industry and the strategic partnerships forming around AI hardware production.
The Business Times