Google explores expanding the AI chip market through data center partnerships — The Wall Street Journal

Investing.com – Google is seeking to expand its artificial intelligence chip market strategy to compete with the current market leader Nvidia.

According to a report by The Wall Street Journal citing sources familiar with the matter, the company is increasing financial support for data center partners who can provide computing power to a broader customer base.

Sources revealed that Google is in talks to invest approximately $100 million in cloud computing startup Fluidstack as part of a deal valuing the company at around $7.5 billion. Fluidstack is one of the emerging cloud service providers increasingly offering computing services to AI companies.

Sources said the company aims to support Fluidstack’s growth and encourage more computing service providers to use its AI chips. Google’s AI chips are called Tensor Processing Units, or TPUs.

Sources indicated that Google has discussed expanding financial commitments to other data center partners, which could increase demand for TPUs.

Sources also stated that the management of Google Cloud has recently revisited a long-standing internal discussion about restructuring the TPU team into an independent division. Such a plan could enable Google to expand investment opportunities, including bringing in external capital.

A Google spokesperson said there are currently no plans to restructure the TPU division.

This article was translated with the assistance of artificial intelligence. For more information, please see our Terms of Use.