Alphabet Inc.'s (NASDAQ:GOOG) (NASDAQ:GOOGL) Google is reportedly advancing its AI hardware push by working with Marvell Technology (NASDAQ:MRVL) on two new chips designed to improve efficiency and challenge Nvidia Corp's (NASDAQ:NVDA) lead.
Custom Chips To Boost AI Performance
Google is in discussions with Marvell to develop a memory processing unit designed to work alongside its Tensor Processing Unit and a new TPU specifically optimized for running AI models, Reuters reported on Sunday (via The Information).
The chip is aimed at improving how data moves during AI workloads, a key bottleneck in large-scale model performance.
The companies are also exploring a next-generation TPU tailored specifically for running AI models more efficiently.
The report said the memory chip design could be finalized as early as next year before moving into test production
Google and Marvell did not immediately respond to Benzinga's request for comments.
TPU Strategy Targets Nvidia's Grip
Google has been investing heavily in its in-house chips to reduce reliance on Nvidia's GPUs, which dominate the AI computing market. Sales of TPUs have emerged as a major contributor to Google's cloud revenue growth.
In February 2026, Google secured a major boost as Meta Platforms, Inc. (NASDAQ:META) reportedly entered into a multi-year deal to lease its TPUs to support the development of advanced AI models.
In March, reports indicated that industry insiders believe Google's rising chip demand could position it as one of Taiwan Semiconductor Manufacturing Company's (NYSE:TSM) largest customers in the years ahead.
Price Action: On Friday, Alphabet Inc. shares rose, with GOOGL closing at $341.68, up 1.68% and GOOG at $339.40, up 1.99%, while both slipped slightly in after-hours trading, according to Benzinga Pro.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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