Rumor has it that Google (GOOGL.US) will join hands with AMD (AMD.US) to create the next generation AI chip, Wedbush called “the industry may change dramatically”

The Zhitong Finance App learned recently that Google (GOOG.US, GOOGL.US) is cooperating with AMD (AMD.US) to develop its next generation tensor processing unit (TPU). Wedbush Securities believes that if this cooperation is true, it may cause drastic changes in the semiconductor industry.

Matt Bryson, an analyst at Wedbush Securities, wrote in the report: “If Google chooses to partner with AMD rather than Broadcom, Mywell Technology, or Intel (the latter has recently been very popular in such transformation projects), we think this will be a trend worth watching. We would also like to point out that this rumor alone highlights the importance of the following two points: 1) ASIC design capabilities; 2) IP modules. This shows that in the new era where hardware resources are increasingly limited, competition in chip manufacturing is not a zero-sum game.”

SemiAnalysis, a semiconductor research institute, believes that Google will use AMD to design the 10th generation TPU and make full use of AMD's CPU experience and technology accumulation in the field of packaging and networking. In April of this year, Google released two eighth-generation TPUs - TPU v8t for AI model training and TPU v8i for inference computation.

It is worth noting that although traditional big language model (LLM) training is still dominated by accelerators, the market's dependence on general-purpose computing resources is deepening as demand for inference tasks and reinforcement learning for proxy AI grows. Therefore, some analysts speculate that Google may intend to build a 10th generation TPU specifically optimized for reinforcement learning and proxy workloads, and AMD will provide some of the building blocks.

Before the US stock market on Tuesday, Google fell nearly 1%, and AMD fell more than 3%.