Google to Partner with MediaTek for Its Next-Gen AI Chip

Google is set to collaborate with Taiwan-based semiconductor company MediaTek to develop the next generation of its AI chips, Tensor Processing Units (TPUs). According to a report from The Information, the new chips are expected to be launched next year. This partnership signals a shift in Google’s chip strategy while still maintaining its existing relationship with Broadcom, a company that has been its exclusive AI chip supplier in recent years.

Why Google is Partnering with MediaTek

Google’s decision to work with MediaTek stems from several strategic advantages. MediaTek offers a more cost-effective solution compared to Broadcom, reducing per-chip costs significantly.

Additionally, MediaTek has a strong partnership with Taiwan Semiconductor Manufacturing Company (TSMC), one of the world’s largest chip manufacturers. This collaboration will allow Google to leverage TSMC’s cutting-edge semiconductor technology to develop more efficient and powerful AI chips.

Google’s In-House AI Server Chips

Apart from its collaboration with MediaTek, Google also designs its own AI server chips. These in-house chips are utilized for internal research and development and are also made available to Google Cloud customers.

By manufacturing its own AI hardware, Google is reducing its dependence on Nvidia, which dominates the AI chip industry. This move is crucial, especially as demand for AI chips surges, driven by competitors such as OpenAI and Meta.

Google’s Sixth-Generation TPU and Its Market Impact

Late last year, Google launched its sixth-generation TPU, positioning itself as a viable alternative to Nvidia’s chips for both internal use and cloud clients. The move was part of Google’s broader strategy to stay competitive in the AI market.

Research firm Omdia reported that Google’s expenditures on TPUs ranged between $6 billion and $9 billion in 2023, based on Broadcom’s AI semiconductor revenue projections. Partnering with MediaTek is expected to further optimize costs and enhance production scalability.

Google and Apple Collaboration on RCS Messaging

In addition to its AI chip advancements, Google is also in discussions with Apple to introduce Rich Communication Services (RCS) messaging to Indian mobile users. This potential partnership could extend Apple’s exclusive blue bubble messaging service, which is currently only available to iPhone users, to Android devices.

The integration of RCS is expected to disrupt India’s business communications sector, which has been largely dependent on traditional SMS, with WhatsApp also rapidly gaining market share.

RCS Messaging in India: A Game Changer

Apple’s collaboration with Google could pave the way for a seamless messaging experience between iPhone and Android users. Google has already partnered with Indian telecom operators, including Vodafone Idea and Reliance Jio, to support RCS messaging.

The backend integration between telecom companies, Apple, and Google is not expected to alter user experience, as RCS messages will continue to function over mobile data or Wi-Fi, similar to SMS.

The Impact on A2P Messaging

One of the significant effects of this collaboration will be on Application-to-Person (A2P) messaging. Businesses, including banks and e-commerce platforms, rely heavily on A2P messaging for official communications, customer notifications, and transactional alerts.

The introduction of RCS in India could revolutionize how businesses interact with consumers by offering richer media support, read receipts, and better security features compared to traditional SMS.

Conclusion: Google’s Strategic Moves for the Future

Google’s partnership with MediaTek for AI chip development and its potential collaboration with Apple for RCS messaging highlight its broader strategy to strengthen its presence in both AI hardware and digital communication. By leveraging MediaTek’s cost-effective chip production and TSMC’s advanced manufacturing capabilities, Google is positioning itself as a formidable player in the AI chip market. Simultaneously, its efforts to enhance cross-platform messaging in India reflect its commitment to improving digital communication worldwide.