Google is developing a new AI chip to boost Gemini efficiency

Alphabet, Google's parent company, is working on a new server chip designed to make its in-house Gemini artificial intelligence models run more efficiently. The chip, internally called "Frozen v2," is expected to be released sometime in 2028, according to The Information, citing anonymous sources.

The report suggests the chip could be between six and ten times more efficient than Google's existing AI chips, measured by the number of tokens generated per unit of power. In response to a query from TechCrunch, Google did not directly confirm or deny the report. "Our teams are constantly researching and experimenting with new innovations to deliver maximum performance and efficiency for our users and customers," the company said, adding that not every project moves into production but such exploration is central to their full-stack approach.

AI companies are increasingly developing their own chips to make their models more efficient and address global shortages in AI computing capacity. Efficiency has become a key selling point amid concerns about AI spending dampening market enthusiasm. Firms are also trying to reduce reliance on Nvidia, which has historically dominated the AI chip market.

In June, OpenAI announced its first custom chip, an inference processor called Jalapeño. Earlier this month, Anthropic was reported to be discussing a chipmaking partnership with Samsung. Investors have previously worried about Alphabet's heavy planned expenditures—between $180 billion and $190 billion—to build out its AI strategy. News of the more efficient Frozen v2 chip appeared to reassure investors, giving Google a boost ahead of its earnings report later this week. Following the report, Google's stock rose about 3% on Monday morning.