Alphabet is expanding its custom chip program by enlisting MediaTek to manage I/O and packaging for its next-generation TPU training accelerators. Broadcom is slated to develop the inference chip components, while TSMC will manufacture both designs using its most advanced process nodes, underlining Google’s move toward vertical integration in AI hardware.

The U.S. Department of Defense has integrated Google’s Gemini AI model into its suite of battlefield and analytical tools, marking one of the first major military applications of Alphabet’s in-house large language model. This adoption could open a strategic revenue stream and strengthen Google Cloud’s positioning in government and defense contracts.

The European Commission has ruled that Google must open Android to competing AI services on par with its own offerings, forcing the company to provide interoperable access to core AI functions. This regulatory action may dilute Google’s control over its mobile ecosystem and pressure advertising and app revenues tied to Android users.

These developments underscore a dual trajectory for Google: accelerating AI chip self-reliance and expanding enterprise and government AI deployments, while facing heightened regulatory scrutiny in its core mobile business. Investors will assess the balance between potential new defense and cloud income and the risks to Android-driven ad growth under EU mandates.