Broadcom to Supply Google Custom TPUs Through 2031, Cutting Nvidia GPU Dependence
Broadcom and Google ink a chip partnership through 2031 to co-develop custom TPUs for data centers, undercutting reliance on third-party GPUs. Broadcom also grants Anthropic access to 3.5 GW of Google-based AI capacity, signaling large AI spenders’ shift away from Nvidia’s hardware.
1. Deal Terms
Broadcom Inc has agreed to design and supply next-generation custom tensor processing units (TPUs) and data center components for Google through 2031, strengthening Google’s in-house chip strategy and reducing its reliance on external suppliers.
2. Strategic Impact on Nvidia
Google’s move to Broadcom-designed TPUs targets machine learning workloads more efficiently than conventional GPUs, directly challenging Nvidia’s dominance in the AI hardware market and potentially diverting orders away from Nvidia.
3. Anthropic Capacity Agreement
Broadcom also granted Anthropic access to approximately 3.5 gigawatts of AI computing capacity powered by Google processors beginning in 2027, as Anthropic reported annualized revenue surpassing $30 billion—more than triple its year-earlier figure.