As Google announces the making of more of its own semiconductors, experts suggest it might land them in a costly artificial intelligence (AI) battle. Google plans to prepare a new chip that can handle YouTube advertising and big data analysis. It is believed the new announcement can be a part of Google’s aim to combat rising AI costs.
Decoding Axion!
Google’s new product Axion, the new chip, is a type of chip commonly used in big data centers. It is believed to extend early initiative’s by Google to develop new computing resources, through specialised chips used for AI work. Google has leaned into that strategy since the late 2022 release of ChatGPT kicked off an arms race that has threatened its dominant position as a gateway to the internet.
The new Axion processors aims to improve performance by up to 30% in comparison with the fastest similar Arm-based chips available in the cloud, as per insights from Google’s internal data.Experts have suggested that the chip plans to reduce Google’s reliance on PAN -India vendors and compete with partners such as Intel and Nvidia NVDA. However, Google officials denied standing as a competitor.
The AI battle ahead!
Industry experts believe that Google’s investment in Axion can be worth only if the company achieved only half of its claimed performance improvements. “It still faces intense competition from the other large cloud companies for new business, he said.This is going to be like any other set of web services that these hyperscalers offer. It’s going to be sort of tit-for-tat back and forth,” Mike Gualtieri, principal analyst, Forrester, explained.
Furthermore, “I see this as a basis for growing the size of the pie,” Amin Vahdat, Vice president, Google, overseeing the company’s in-house chip operations, concluded.
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