Synopsis
Google has placed a significant order with Intel for over three million tensor processing units to be manufactured in 2028. This move signals a potential shift in the chip manufacturing landscape. Nvidia is also exploring Intel's technology for its own processor needs. This development is seen as a positive sign for Intel's ongoing turnaround efforts.Nvidia has not placed an order with Intel yet, but has been evaluating whether the company's technology can be used to make a processor that combines four graphics chips into a single unit, the report said.
Intel's shares surged more than 13% in premarket trading.
Alphabet, Intel and Nvidia did not immediately respond to Reuters requests for comment. Reuters could not independently verify the report.
The news is the latest sign that a turnaround at Intel is gathering steam after years of management blunders allowed TSMC to take the lead in chip manufacturing.
Tesla CEO Elon Musk said in April that the EV maker plans to use Intel's next-generation 14A manufacturing process to make chips at its Terafab project, an advanced AI chip complex Musk has envisioned in Austin.
