Google and MediaTek to work together on next-gen TPUs for AI servers

Google’s strategy for its TPUs (Tensor Processing used in their servers) is undergoing a potentially significant change, with possible shifts in partnerships and design responsibilities. Recent reports indicate a move towards collaboration with MediaTek, alongside its long-standing relationship with Broadcom, to optimize costs and enhance its AI infrastructure.

The core of this development revolves around Google’s need for powerful compute units to support its increasingly demanding AI models, including Gemini. These models, while widely accessible, require substantial processing power on the back end, forcing companies like Google to constantly seek more cost-effective solutions.

For nearly a decade Google has relied on Broadcom for its TPU needs. While earlier generations of these chips have been retired, those from 2017-2021 continue to serve Google’s cloud customers. The upcoming 2025 TPUs, however, may mark a turning point in this partnership.

According to insights from The Information, Google is exploring a collaboration with MediaTek that is motivated by several factors. First, MediaTek reportedly offers more competitive pricing per chip. Secondly, MediaTek maintains strong ties with TSMC, the same Taiwanese foundry that manufactures Google’s TPUs. This existing relationship with TSMC presents a logistical advantage.

A bit of nuance in this potential partnership is the likely division of labor. From the reports, MediaTek is expected to handle the design of I/O modules, while Google will take on a larger role in the overall TPU design. This shift represents a move towards greater in-house control for Google, a departure from its previous reliance on Broadcom for comprehensive design. MediaTek will also act as a liaison with TSMC and be responsible for quality control.

It’s important to note that Google’s TPU production involves two distinct chips: one for training AI models and another for powering services like Search, YouTube, and Gemini. The potential integration of MediaTek raises questions about whether Google will consolidate its efforts into a single chip design for the 2026 production cycle.

Despite this potential shift, Broadcom will remain a key player in the AI chip market, working with other major clients such as Meta Platforms, Arm Holdings, Apple, and OpenAI. While Google is obviously a substantial portion of Broadcom’s AI chip revenue, Broadcom’s diverse client base means they will stay relevant with our without Google’s full reliance on them for their TPUs.