- Google is boosting financial support to data-center partners to spur adoption of its AI chips, aiming to compete with NVIDIA.
- The company is reportedly considering a roughly $100 million investment in startup Fluidstack, valuing it at around $7.5 billion.
- This aggressive financial strategy comes as Alphabet Inc.‘s stock (GOOG) was up 4% following the news.
- Google is actively negotiating with additional partners to increase commitments in hopes of generating more demand for its Tensor Processing Units (TPUs).
According to a report from the Wall Street Journal, Google is deploying its financial power in a new play to challenge Nvidia Corp.‘s dominance in Artificial Intelligence chips. The Alphabet Inc. subsidiary has significantly increased funding for data-center partners that provide computing power to customers.
This strategic move aims to expand the market potential for Google’s custom AI chips, known as Tensor Processing Units (TPUs). Consequently, the company hopes to convert its financial investments into greater market share.
Meanwhile, Google is also reportedly mulling a substantial investment of about $100 million in cloud-computing startup Fluidstack. This potential deal would value the young company at approximately $7.5 billion.
As per the report, Google is speaking with other data center partners about increasing its financial commitments. The overarching goal is to stimulate additional demand for its TPU hardware.
Shares of Alphabet (GOOG) reacted positively to the news, trading up 4%. This market movement underscores investor interest in Google’s competitive strategy.
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