Alphabet’s Google (GOOGL) is working with Meta Platforms (META) on a new initiative to make its artificial intelligence chips better than Nvidia’s (NVDA). Per sources close to the agreement, the initiative aims to make Google’s artificial intelligence chips better at running PyTorch, the world’s most widely used AI software framework. PyTorch, an open-source project heavily supported by Meta Platforms, is one of the most widely used tools for developers who make AI models.
A lot of eyes have been on Alphabet (GOOGL) recently, thanks to its in-house tensor processing units (TPU). Several experts predict that Alphabet’s TPUs could become a major revenue driver that sends GOOGL stock higher. These application-specific chips have long been the backbone of Google Cloud, and investors are warming to the idea that selling them externally could be a lucrative extension of that strategy.
A Google Cloud spokesperson did not comment on the specifics of the project with Meta. However, a spokesperson confirmed to Reuters that the move would provide customers with a choice. “We are seeing massive, accelerating demand for both our TPU and GPU infrastructure,” the spokesperson said. “Our focus is providing the flexibility and scale developers need, regardless of the hardware they choose to build on.”
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Alphabet is positioned for growth, particularly through its AI chip technology, which analysts value at $900 billion. Furthermore, several top, reliable Wall Street firms have GOOGL stock as a buy, with ATH expectations over the coming months. This could indicate that the Google developer is set for a second consecutive year of leading the magnificent-7.