Google orders 3 million TPUs from Intel as Nvidia eyes foundry partnership

Google Orders 3 Million Intel Chips as Nvidia Eyes Backup Foundry

Alphabet’s Google has placed an order with Intel to manufacture more than three million tensor processing units for 2028, according to a report from The Information published Monday, citing four people with direct knowledge of the discussions. The deal marks a major vote of confidence in Intel’s foundry ambitions and sent the chipmaker’s shares surging in premarket trading.

Intel as TSMC Alternative

The order positions Intel as a credible alternative to Taiwan Semiconductor Manufacturing Company, which has struggled to keep pace with surging AI chip demand. Nvidia is also evaluating Intel’s advanced packaging technology and 18A process node for future chip production, according to the same report, though it has not yet placed a formal order.panewslab

According to Futunn, citing informed sources, the Nvidia processor under consideration would integrate four graphics chips into a single unit. Earlier reporting from DigiTimes in January indicated that Nvidia was exploring Intel’s foundry for its Feynman generation of GPUs set to debut in 2028, with Intel potentially handling I/O die manufacturing and up to 25 percent of advanced packaging needs through its EMIB technology.fool

Market Reaction and Context

Intel’s stock surged more than 10 percent in premarket trading on Monday following the report, according to multiple sources. The company’s shares had already been on a strong run this year after announcing an expanded partnership with Google in April for multiple generations of Xeon data-center processors and custom infrastructure processing units.morningstar

The Google TPU order represents a new dimension to that relationship, moving beyond CPUs into the custom AI accelerators that power Google’s data centers and serve customers including Anthropic.

A Foundry Turnaround in Focus

The news comes after a turbulent period for Intel’s foundry business. In late 2024, Reuters reported that Nvidia had tested Intel’s 18A process but stopped moving forward. The fresh interest from both Google and Nvidia suggests Intel’s manufacturing capabilities may have improved under CEO Lip-Bu Tan’s leadership. Intel has pledged over $100 billion toward global manufacturing expansion and secured $8.9 billion in U.S. government funding to revitalize its foundry operations.yahoo

Nvidia stated it has not yet placed an order with Intel, leaving the scope of any future commitment uncertain.futunn