Broadcom and Google seal five-year AI chip partnership Proactive uses images sourced from Shutterstock
Broadcom Inc (NASDAQ:AVGO, XETRA:1YD), the US semiconductor group, has agreed a long-term deal with Google to design and supply future generations of the search giant’s custom artificial intelligence processors, as well as components for its next-generation data centre infrastructure, through 2031.
The agreement deepens Google’s strategy of developing proprietary chips to reduce its dependence on third-party suppliers and strengthen the economics of its cloud business.
At the centre of the partnership are Google’s tensor processing units (TPUs), custom chips engineered to handle machine learning workloads more efficiently than conventional graphics processing units (GPUs).
Google has been positioning the hardware as an in-house alternative to the Nvidia hardware that currently dominates the AI market.
In a separate but related development, Broadcom has also struck an agreement with Anthropic, the AI company behind the Claude family of models, granting it access to approximately 3.5 gigawatts of AI computing capacity powered by Google processors from 2027.
Anthropic said demand for its products has accelerated sharply in 2026, with annualised revenue now exceeding $30 billion, more than triple the figure from a year earlier.
The deals reflect a broader structural shift underway across the technology industry, as the largest AI spenders move to design their own silicon rather than rely on merchant chip suppliers, in a bid to control costs and tailor hardware to their specific workloads.