Google is working on a new AI chip designed to make Gemini more efficient

Alphabet, Google’s parent company, is reportedly designing a new server chip codenamed “Frozen v2,” expected in 2028, to enhance the operational efficiency of its in-house Gemini AI models. The chip is anticipated to be considerably more efficient than Google’s current AI hardware, a development that could help alleviate concerns about AI spending and reduce dependency on chipmaker Nvidia. News of this potential advancement has reportedly boosted Alphabet’s stock.

• Alphabet is reportedly developing a new server chip, “Frozen v2,” for its Gemini AI models.
• The chip is expected to be released in 2028 and could be 6-10 times more efficient than existing AI chips.
• This move aligns with a broader industry trend of AI companies developing custom chips for efficiency and capacity.
• The development comes amid concerns about AI spending and efforts to reduce reliance on Nvidia.
• News of the “Frozen v2” chip reportedly caused Alphabet’s stock to increase by 3%.
• Google’s total planned AI expenditures are between $180 billion and $190 billion.
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