Alphabet jumps 2.8% on new AI chip 'Frozen v2' development, adds $15B to cofounder fortunes

Published Jul 20, 03:33 PM UTC

Alphabet shares jumped 2.8% on Monday following a report that the Google parent is developing a new AI chip, internally called 'Frozen v2,' which engineers expect to be up to 10 times more energy-efficient than its predecessor. The chip is planned for deployment by 2028 to ease an internal shortage of AI computing power that has strained operations and forced Google Cloud to turn away customers. The rally added a combined $15 billion to the net worths of cofounders Larry Page ($292.4 billion) and Sergey Brin ($269.7 billion), making Page the second-richest person globally behind Elon Musk. Alphabet is set to report Q2 earnings on Wednesday, with analysts projecting $117.1 billion in revenue and $2.90 EPS, representing 21% and 25% year-over-year increases respectively. Google Cloud revenue is expected to have surged 65% to $22.4 billion. Alphabet's stock has risen 87.5% over the past year.