Google’s parent company Alphabet is designing new server chips to make its Gemini model run more efficiently.
The new chip, internally referred to as “Frozen v2,” is expected to be released sometime in 2028, The Information reported, citing anonymous sources. The chip could be six to 10 times more efficient than Google’s existing AI chips, as measured by the number of tokens generated per unit of power, according to the report.
In a response to TechCrunch, the company did not directly confirm this report. He didn’t deny that either.
“Our teams are constantly researching and experimenting with new innovations to deliver maximum performance and efficiency for our users and customers,” Google told TechCrunch. “While not every project makes it to production, this rigorous research is central to our full-stack approach. Co-designing our hardware and software from the ground up ensures that our systems are integrated and highly optimized for real-world workloads.”
AI companies are increasingly seeking to produce their own chips as a way to run in-house models more efficiently and address the global shortage of AI computing power. These efficiencies have become a key selling point for tech companies as concerns about AI spending dampen the market excitement that previously defined the industry. At the same time, companies are engaged in ongoing attempts to divest from chipmaker Nvidia, which has historically dominated the AI chip market and whose dominance has made major AI makers dependent on the company’s hardware.
In June, OpenAI announced its first custom chip, an inference processor called Jalapeño. Earlier this month, it was reported that Anthropic was in talks with Samsung about a new chip manufacturing partnership.
Investors have previously been concerned about Alphabet’s large planned spending to help it build out its AI strategy. Earlier this year, Google announced that it planned to spend between $180 billion and $190 billion. With a lot of money at stake, the company needs to prove those investments will pay off.
News of a more efficient Frozen v2 chip appeared to reassure investors, giving Google a boost as it prepares to report earnings later this week. The company’s stock rose about 3% on Monday morning following The Information’s press release.
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