THE APEX TIMES
Google reportedly places order with Intel for more than 3 million TPUs in 2028, boosting Intel Foundry hopes
A reported deal, attributed to The Information and sources familiar with the talks, would be one of the largest external validations yet for Intel’s contract manufacturing push as AI chip demand strains the wider supply chain.
Alphabet’s Google has reportedly ordered more than three million Tensor Processing Units, or TPUs, from Intel for production in 2028, according to The Information and people familiar with the discussions. TPUs are Google’s in-house AI accelerators designed to train and run large machine-learning models for Google Cloud and other systems. The report did not provide a contract value or details of the exact chip designs to be produced.
The reported order is expected to be manufactured through Intel’s contract chip manufacturing and advanced packaging capabilities, an area Intel has been emphasizing as it tries to rebuild its presence as a “systems foundry” for AI-era chips. Intel describes its foundry approach as pairing process nodes with assembly and test, and it highlights advanced packaging techniques aimed at high-yield production of multi-die “systems of chips.”
Multiple reports said Google’s decision followed months of testing Intel’s manufacturing and packaging capabilities. Mobile World Live said Google plans to use Intel to manufacture some of its TPUs after evaluating Intel’s ability to produce the chips, pointing to growing pressure on Taiwan Semiconductor Manufacturing Co. as AI customers look for additional supply paths.
In the Reuters report that circulated from The Information’s reporting, Intel declined to comment on the story, while Alphabet’s Google and Nvidia did not immediately respond to requests for comment. Reuters also stated it could not independently verify the report. That means the timing, scale, and whether the order is finalized or still subject to change are still unclear.
The backdrop for the reported shift is the stress on advanced semiconductor capacity. As AI demand has surged, the supply chain for leading-edge wafers and advanced packaging has become harder to scale quickly, according to reporting on the Intel order. That environment has encouraged some chip designers, including large AI-capable cloud operators, to explore alternative manufacturing partners rather than relying solely on TSMC.
For Intel, the potential order would represent a major proof point for its strategy to win business from chip designers that do not want to run their own factories. The Intel Foundry fact sheet frames the approach around full-stack support, including technology for chip design enablement and global assembly and test, and it describes its focus on advanced transistor architectures and packaging methods used for dense AI accelerators.
Watch points are straightforward but limited by what is not disclosed: the reported TPU order’s commercial terms, the specific TPU generations involved, which Intel process node(s) and packaging flow would be used, and whether production ramps are guaranteed. Until Google, Intel, or Nvidia provide more detail, the most immediate confirmation likely comes from future Intel guidance, customer announcements, or additional reporting that can independently corroborate the deal. If finalized, the order would also increase scrutiny of how quickly Intel can meet volume demand across wafer fabrication, advanced packaging, and test schedules for AI workloads in the late 2020s.
Why It Matters
- If confirmed, the reported TPU order would be a significant new source of external demand for Intel Foundry at a time when AI chip supply is stretched and customers are looking to diversify manufacturing partners.
- The deal would highlight how advanced packaging and systems-of-chips integration, not just leading-edge wafer fabrication, increasingly shape who wins AI accelerator production.
- A large hyperscaler customer moving to Intel could pressure TSMC’s customers to accelerate contingency planning, potentially shifting long-range capacity expectations across the industry.
- Intel’s ability to execute on a late-decade ramp would become a key benchmark for the durability of its manufacturing turnaround narrative.
Sources
Key Facts
- Google has reportedly placed an order for more than three million TPUs from Intel, with production targeted for 2028, according to The Information and people familiar with the talks.
- TPUs are Google’s specialized AI chips used to train and run machine-learning models in Google Cloud and other internal systems.
- Reports said Google’s move follows months of testing Intel’s manufacturing and advanced packaging capabilities.
- Intel declined to comment on the report, and Reuters said it could not independently verify the order; Google and Nvidia did not immediately respond to requests for comment.
- The reporting also said Nvidia was evaluating Intel technology for a future processor approach, though it had not placed an order at the time described.
- Intel has been positioning its “Intel Foundry” business around a systems-foundry model that combines process nodes with advanced packaging and assembly and test services.
Technology Related
Intel’s push toward on-prem, privacy-focused AI gets a partnership spotlight as Xeon 6 platform work expands
A new extension to Kasm Technologies’ deal work with Intel highlights a market trend toward running large language model workloads locally on enterprise hardware, aiming to reduce data exposure and reliance on GPUs.
Broadcom (AVGO) set to report earnings Wednesday after the bell, with investors focused on guidance and demand outlines
The fabless chip and software maker Broadcom will release its next quarterly results this Wednesday after market close, according to a preview posted by Yahoo Finance.
Apple’s John Ternus steps in as investors weigh a valuation-driven “nearly $5 trillion” challenge
A leadership handoff arrives after a sharp stock rally and with Apple trading at a high forward-earnings multiple, narrowing the margin for error, according to market commentary.
Salesforce shares jump 22% after results challenge AI skepticism, CNBC’s Jim Cramer says
Salesforce reported fiscal second-quarter 2027 results on Aug. 27, sending its stock up about 22.6% as investors reassessed worries that artificial intelligence would undercut demand for enterprise software. Jim Cramer, speaking in a market context reported by Yahoo Finance, argued those AI fears were overblown.
Seasonality on Wall Street turns investors’ attention to September, with Nvidia and Micron in focus
A widely cited market pattern says the Nasdaq has fallen in 48% of Septembers since 1971, reigniting questions about whether the calendar has any edge for high-growth technology stocks.
Jim Cramer argues Netflix’s valuation should reflect durability despite leadership shake-up
On CNBC’s Mad Money, the host addressed a viewer question about whether to hold or adjust a position in Netflix after recent company leadership moves and setbacks.
Netflix releases a new trailer and key art for ‘The Fixers,’ previewing covert missions in Taiwan’s temple world
The streamer says the latest promotional materials offer a deeper look at embedded operatives and a hidden network tied to traditional temple culture in Taiwan.
Nvidia’s $3.5 Billion Push Highlights a Broader AI Supply-Chain Strategy
A report says Nvidia is backing the next phase of AI expansion with a $3.5 billion commitment tied to its push across cloud, custom silicon, edge computing, and automotive systems.
Anthropic signs a $35 billion cloud computing deal tied to Nvidia-backed startup
The AI lab says it has secured access to large-scale computing capacity through a U.S. startup that is backed by Nvidia, adding to a broader wave of infrastructure contracts as model developers race to secure enough GPU time.
Amazon shares drop after FTC lawsuit alleges manipulation of advertising prices
Amazon.com Inc. (AMZN) fell following a U.S. Federal Trade Commission lawsuit that accuses the company of using tactics on its ad marketplace to control advertising pricing and extract significant value from advertisers.