Google (GOOG)(GOOGL) is searching for a wider market for its artificial intelligence chips, or TPUs, but that may be challenging in a market dominated by Nvidia (NVDA), according to The Wall Street Journal.
Another challenge is marketing their TPUs to rival cloud providers, such as Amazon Web Services (AMZN) and Microsoft (MSFT) Azure, the report said. Manufacturing bottlenecks could also become an issue, as Google utilizes Taiwan Semiconductor Manufacturing Company (TSM) to produce its TPUs. TSM’s largest client is Nvidia.
What’s more, another large-scale potential client, Meta Platforms (META), inked a multiyear deal with Nvidia earlier this week.
Instead, Google has reached out to smaller hyperscalers, called neoclouds, such as Fluidstack. Google is considering a $100M investment in the startup, which provides computing power for AI companies, the report said. Google has also provided financing for Hut 8 (HUT), Cipher Mining (CIFR), and Terawulf (WULF), all crypto-mining companies that are transitioning to data center developers. Google has also found some traction with Anthropic (ANTHRO), the creator of the popular Claude AI models, for running some of its workloads on TPUs.