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.



OpenAI Wins $200 Mn Contract with US Military

FILE PHOTO: OpenAI logo is seen in this illustration taken May 20, 2024. REUTERS/Dado Ruvic/Illustration/File Photo/File Photo
FILE PHOTO: OpenAI logo is seen in this illustration taken May 20, 2024. REUTERS/Dado Ruvic/Illustration/File Photo/File Photo
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OpenAI Wins $200 Mn Contract with US Military

FILE PHOTO: OpenAI logo is seen in this illustration taken May 20, 2024. REUTERS/Dado Ruvic/Illustration/File Photo/File Photo
FILE PHOTO: OpenAI logo is seen in this illustration taken May 20, 2024. REUTERS/Dado Ruvic/Illustration/File Photo/File Photo

The US Department of Defense on Monday awarded OpenAI a $200 million contract to put generative artificial intelligence (AI) to work for the military.

San Francisco-based OpenAI will "develop prototype frontier AI capabilities to address critical national security challenges in both warfighting and enterprise domains," according to the department's posting of awarded contracts.

The program with the defense department is the first partnership under the startup's initiative to put AI to work in governments, according to OpenAI.

OpenAI plans to show how cutting-edge AI can vastly improve administrative operations such as how service members get health care and also cyber defenses, the startup said in a post.

All use of AI for the military will be consistent with OpenAI usage guidelines, according to the startup.

Big tech companies are increasingly pitching their tools to the US military, among them Meta, OpenAI and, more predictably, Palantir, the AI defense company founded by Peter Thiel, the conservative tech billionaire who has played a major role in Silicon Valley's rightward shift.

OpenAI and defense tech startup Anduril Industries late last year announced a partnership to develop and deploy AI solutions "for security missions."

The alliance brings together OpenAI models and Anduril's military tech platform to ramp up defenses against aerial drones and other "unmanned aircraft systems", according to the companies.

"OpenAI builds AI to benefit as many people as possible, and supports US-led efforts to ensure the technology upholds democratic values," OpenAI chief executive Sam Altman said at the time.