Google reportedly selects Intel to manufacture more than 3 million tensor processing units scheduled for production in 2028

Alphabet has reportedly selected Intel as a manufacturing partner for more than 3 million tensor processing units (TPUs—custom AI chips) scheduled for production in 2028, according to The Information citing people familiar with the discussions.

Intel shares rose more than 9% following the report. The deal would support Intel's contract manufacturing business as the company rebuilds its position in advanced semiconductor production.

For Google, expanding in-house TPU production could support its strategy of reducing reliance on Nvidia's graphics processors while strengthening the competitiveness of its cloud business. The report also noted Nvidia is evaluating Intel's manufacturing technology for a future processor design, although no order has been placed.