Business

Lip-Bu Tan's Intel Eyed to Make Three Million Custom AI Chips for Google
By Reuters | 08 Jun, 2026

Intel's technology is being appraised for a processor that would combines four graphics chips into a single unit.

Alphabet's Google has placed an order with Intel to manufacture more than three million tensor processing units in 2028, The Information reported on Monday, citing people with direct knowledge of the discussions.

Nvidia has not placed an order with Intel yet, but has been evaluating whether the company's technology can be used to make a processor that combines four graphics chips into a single unit, the report said.

Intel's shares surged more than 13% in premarket trading.

Alphabet, Intel and Nvidia did not immediately respond to Reuters requests for comment. Reuters could not independently verify the report.

The news is the latest sign that a turnaround at Intel is gathering steam after years of management blunders allowed TSMC to take the lead in chip manufacturing.

Tesla CEO Elon Musk said in April that the ​EV maker plans to use Intel's next-generation 14A manufacturing process to make chips at its Terafab project, an advanced AI chip complex Musk has ‌envisioned in Austin.

(Reporting by Anhata Rooprai in Bengaluru; Editing by Shreya Biswas)