Google alters cloud playbook turning to partners to sell more AI chips
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓Alphabet said on Tuesday that Oracle will offer Google's tensor processing units to customers.
- ✓This move marks a shift as Google pushes its custom chips outside its own walls to compete with Nvidia.
- ✓"Google was great at doing its own thing, but it was never able to serve customers," experts said.
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- India Economy
Michael Short | Bloomberg | Getty Images
Google has spent years pitching customers on the advantage of buying its chips, models and cloud services in one place, offering a full stack that rivals Amazon and Microsoft have tried to replicate.
Now, the company is pushing its equipment outside of its own walls to reach more customers and build a bigger business around artificial intelligence chips, a market that Nvidia has dominated.
A day ahead of its third-quarter earnings report, Alphabet said on Tuesday that Oracle will offer Google's tensor processing units, or TPUs, the custom chips the internet giant has been developing since 2013. It's the first time customers will be able to access TPUs outside of Google's infrastructure, and shows that cloud boss Thomas Kurian, who previously spent more than 20 years at Oracle, is looking elsewhere for growth.
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