Google is set to collaborate with Taiwan’s MediaTek to develop its next-generation Tensor Processing Units (TPUs), expected to launch next year, according to a report from The Information. This marks a shift in Google’s AI chip strategy, though the company will continue working with Broadcom, which has been its exclusive AI chip supplier in recent years.
Why the Shift to MediaTek?
The decision to partner with MediaTek is reportedly driven by cost efficiency, as the company offers lower per-chip pricing compared to Broadcom. Additionally, MediaTek has a strong relationship with TSMC (Taiwan Semiconductor Manufacturing Company), one of the world’s leading chip manufacturers, making it a strategic choice for Google.
Alongside this new partnership, Google continues to design its own AI server chips, which support internal research and cloud services. This strategy helps Google reduce its dependence on Nvidia, which remains the dominant force in AI chip production, especially as companies like OpenAI and Meta drive high demand for Nvidia’s chips.
Last year, Google launched its sixth-generation TPU, offering an alternative to Nvidia chips for both its own use and cloud customers. Reports indicate that Google spent between $6 billion and $9 billion on TPUs in 2023, based on Broadcom’s revenue projections for AI semiconductors.
Google and Apple Team Up for RCS Messaging in India
In a separate development, Google is reportedly exploring a partnership with Apple to bring Rich Communication Services (RCS) messaging to Indian mobile users this year. If implemented, this could extend Apple’s blue bubble messaging, currently exclusive to iPhone users, to Android devices as well.
The collaboration is expected to reshape India’s business communication landscape, which has been dominated by traditional SMS and is rapidly shifting towards WhatsApp for messaging. Apple’s move aligns with Google’s ongoing efforts in India, where it has already partnered with Vodafone Idea and Reliance Jio for RCS support.
Despite backend integration between Apple, Google, and telecom operators, the user experience is expected to remain unchanged. RCS messages will function over mobile data or Wi-Fi, similar to SMS. However, this shift could disrupt A2P (application-to-person) messaging, a crucial channel for businesses like banks and e-commerce platforms that rely on SMS for official communications.
