Google has announced a strategic partnership with OpenAI, incorporating ChatGPT and API services into its cloud platform. This collaboration leverages Google’s data centers across the US, Japan, the Netherlands, Norway, and the UK, enhancing OpenAI’s offerings. Although OpenAI won’t directly utilize Google’s ASIC chips, the partnership naturally involves this advanced computing power, stimulating Google Cloud revenue and demand for in-house chip development. As AI workloads grow, Google outpaces competitors like Apple, which lacks its own AI data centers and ASICs. Major cloud service providers (CSPs) face cost pressures, particularly smaller firms, leading them to seek partnerships with larger, established CSPs like Google, which excels in ASIC production. Google’s internal chip team, experienced in chip design and development, ensures high stability and continuity, making it a prime target for ASIC vendors. Key suppliers like Broadcom and MediaTek are trusted partners, showcasing the importance of stable revenue sources in the dynamic ASIC market.
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