Google Leverages Broadcom’s $20B AI Chips, Faces MediaTek Competition
Google sources custom AI inference chips from Broadcom, which reported $20B in AI chip revenue for fiscal 2025 and holds a $73B backlog, leveraging chips that cost one-third of comparable Nvidia GPUs. Emerging competition from MediaTek threatens to erode this cost advantage and reshape Google’s AI compute cost structure.
1. Broadcom Custom AI Chips Partnership
Google sources custom AI inference chips from Broadcom, leveraging the $20B revenue segment in fiscal 2025 and $8.4B reported in Q1 fiscal 2026. These ASICs deliver inference workloads at roughly one-third the cost of comparable Nvidia GPUs, enhancing Google Cloud’s AI efficiency.
2. Competitive Pressure from MediaTek
Broadcom’s $73B custom silicon backlog underscores strong demand, but MediaTek’s entry into AI inference chips introduces a rival supply source. This competition could erode Broadcom’s pricing power and influence Google’s procurement costs and AI infrastructure strategy.