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Google Discussed Dropping Broadcom as AI Chips Supplier

A smartphone with a displayed Broadcom logo is placed on a computer motherboard in this illustration taken March 6, 2023. REUTERS/Dado Ruvic/Illustration/File Photo
A smartphone with a displayed Broadcom logo is placed on a computer motherboard in this illustration taken March 6, 2023. REUTERS/Dado Ruvic/Illustration/File Photo
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Google Discussed Dropping Broadcom as AI Chips Supplier

A smartphone with a displayed Broadcom logo is placed on a computer motherboard in this illustration taken March 6, 2023. REUTERS/Dado Ruvic/Illustration/File Photo
A smartphone with a displayed Broadcom logo is placed on a computer motherboard in this illustration taken March 6, 2023. REUTERS/Dado Ruvic/Illustration/File Photo

Alphabet-owned Google has discussed dropping Broadcom as a supplier of artificial intelligence (AI) chips as early as 2027, The Information reported on Thursday, sending Broadcom shares down 5% in premarket trading.
If that happens, Google will design the chips - known as tensor processing units - in-house, the report said, adding that executives set a goal earlier this year to ditch Broadcom following a standoff between the companies over the price Broadcom was charging for the chips, Reuters said.
Broadcom CEO Hock Tan recently said that generative AI could account for more than 25% of the company's semiconductor revenue next year.
Google has intensified investments in generative AI this year as it plays catch-up after Microsoft-backed OpenAI's launch of ChatGPT last year took the tech world by storm.
The Information also said that Google has been working since last year to replace Broadcom with chipmaker Marvell Technology for an advanced chip internally code-named Granite Redux.
Google, Broadcom and Marvell didn't immediately respond to a Reuters request for comment.

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Google Proposes Fresh Tweaks to Search Results in Europe

The logo of Google LLC is shown at an entrance to one of their buildings in San Diego, California, US, October 9, 2024. (Reuters)
The logo of Google LLC is shown at an entrance to one of their buildings in San Diego, California, US, October 9, 2024. (Reuters)
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Google Proposes Fresh Tweaks to Search Results in Europe

The logo of Google LLC is shown at an entrance to one of their buildings in San Diego, California, US, October 9, 2024. (Reuters)
The logo of Google LLC is shown at an entrance to one of their buildings in San Diego, California, US, October 9, 2024. (Reuters)

Google has proposed more changes to its search results in Europe after some smaller rivals complained about lower traffic to their sites resulting from previous tweaks by the Alphabet unit and as EU antitrust regulators consider levying charges against the company under new EU tech rules.

Under the Digital Markets Act, Google is prohibited from favoring its products and services on its platform. The Act kicked in last year and is aimed at reining in the power of Big Tech.

The world's most popular internet search engine has since then tried to address conflicting demands from price-comparison sites, hotels, airlines and small retailers, among others. The latter three groups said their direct booking clicks have fallen by 30% due to recent Google changes.

"We have therefore proposed more changes to our European search results to try to accommodate these requests, while still meeting the goals set by the DMA," Google's legal director, Oliver Bethell, said in a blog post on Tuesday.

Changes include introducing expanded and equally formatted units allowing users to choose between comparison sites and supplier websites, new formats letting rivals show prices and pictures on their websites as well as new ad units for comparison sites.

"We think the latest proposal is the right way to balance the difficult trade-offs that the DMA involves," Bethell said.

For its search results in Germany, Belgium and Estonia, Google also plans to remove the map showing the location of hotels and the results beneath the map, similar to its old "ten blue links" format from years ago, as part of a short test to gauge users' interest.

"We're very reluctant to take this step, as removing helpful features does not benefit consumers or businesses in Europe," Bethell said.

Google has been in the European Commission's crosshairs since March. DMA violations can cost companies as much as 10% of their annual global turnover.