Alphabet, the parent company of Google, is working on a new server chip designed to enhance the efficiency of its proprietary Gemini models.
This new chip, which is being referred to internally as “Frozen v2,” is expected to debut in 2028, according to reports referencing unnamed sources. The chip is anticipated to be significantly more efficient, potentially six to ten times better than Google’s current AI chips when measured by power consumption relative to the number of tokens produced.
In a statement to TechCrunch, the company did not explicitly confirm or deny these reports. Instead, Google emphasized its ongoing commitment to innovation. “Our teams are continuously exploring new technologies to maximize performance and efficiency for both our users and customers,” Google stated. “While not every initiative reaches production, this thorough exploration is vital to our comprehensive strategy. By developing our hardware and software in tandem from the start, we ensure our systems are well-integrated and optimized for practical applications.”
Amid ongoing global shortages in AI computing resources, many AI companies are trying to create their own chips to optimize their internal models. This drive for efficiency has become increasingly important as financial concerns regarding AI investments have tempered earlier excitement in the industry. Simultaneously, companies are making efforts to reduce dependence on Nvidia, a key player in the AI chip sector whose market dominance has left many major AI developers reliant on its products.
In June, OpenAI released its first custom chip, an inference processor named Jalapeño. Recently, there have been discussions about a potential partnership between Anthropic and Samsung to produce new chips.
Investors have previously expressed concern over Alphabet’s extensive planned spending to enhance its AI strategy, with forecasts indicating an investment of $180 billion to $190 billion this year. Given the significant financial commitment, the company is under pressure to demonstrate that these investments will yield substantial returns.
The announcement of the more efficient Frozen v2 chip seems to have positively influenced investor sentiment, providing a boost for Google ahead of its upcoming earnings report. Following the revelation from The Information, the company’s stock saw an increase of about 3% on Monday morning.
