Google’s Tensor chips failed to meet financial targets: report

Google’s (NASDAQ:GOOG) (NASDAQ:GOOGL) Tensor processors for its Pixel line of smartphones have failed to meet its financial targets, Android Authority reported Friday, citing leaked documents from the company’s gChips division.

“Tensor based Pixel programs have not met our financial targets,” said documents viewed by Android Authority. According to the report, Google’s (GOOG) (GOOGL) financial goal is about $65 to make the business viable. In comparison, Qualcomm’s (QCOM) latest flagship chips are rumored to cost around $150.

The search engine giant has invested heavily in its Pixel line, including designing its own chip and sponsoring big-name celebrities like NBA star Giannis Antetokounmpo. Despite these efforts, it has trailed behind Apple (AAPL) and Android partner Samsung Electronics (OTCPK:SSNLF) in the high-end smartphone segment.

The company released its latest line of Pixel 9 phones in August, earlier than its usual launch month of October, most likely in an attempt to preempt the next iPhone launch.

Its latest line of Pixel phones all feature the on-device artificial intelligent assistant Gemini Nano and a host of generative AI features.

The report added that Google (GOOG) (GOOGL) is aware of its chips’ poor thermal life and battery performance, with overheating being the leading cause of returns for Tensor-based Pixel devices.

Google (GOOG) (GOOGL) did not immediately respond to a Seeking Alpha request for comment.