Google’s parent company Alphabet is reportedly developing a new AI chip, internally known as Frozen V2. This would improve the performance and efficiency of its Gemini AI models. According to the Information, the chip is expected to launch in 2028 and could deliver a major improvement in energy efficiency compared with Google's current AI hardware.
The report stated that Frozen v2 may be six to 10 times more efficient than Google's existing AI chips. Higher efficiency could allow Gemini models to produce responses faster while lowering energy consumption during AI processing.
Google did not confirm the development of the chip. In a talk with TechCrunch, the company said, “Our teams are constantly researching and experimenting with innovations to deliver maximum performance and efficiency for our users and customers. While not every project moves into production, this rigorous exploration is central to our full stack approach. By co-designing our hardware and software from the ground up, we ensure our systems are integrated and highly optimized for real-world workloads.”
The move is part of a wider trend in the AI industry. Many technology companies are building their own chips instead of depending fully on outside suppliers. The growing demand for AI computing power is pushing firms to create custom hardware.
In-house chips help companies improve AI performance, reduce costs, and gain more control over the systems used to run advanced models.
Nvidia currently leads the AI chip market, and many AI companies use its hardware. This dependence has encouraged more firms to develop their own AI chips.
Google is not alone in pursuing dedicated AI processors. OpenAI introduced its first custom AI chip, called Jalapeno, in June. Earlier this month, Anthropic was in discussions with Samsung over a potential chipmaking partnership as companies look to strengthen their AI infrastructure.
Alphabet has also committed meaningful spending to its AI business. Earlier this year, the company stated that it plans to invest between $180 billion and $190 billion, highlighting AI as one of its biggest long-term priorities.
Investors responded positively to the latest report on Frozen v2. Alphabet shares rose around 3% on July 21, following news of the company's reported progress on the next-generation AI chip. The move shows a growing investor interest in companies developing their own AI hardware as competition in the sector continues to intensify.
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