Broadcom signs long-term deal to develop Google’s custom AI chips

BROADCOM said on Monday it has signed a long-term agreement with Google to develop and supply future generations of custom artificial intelligence chips and other components for the company’s next-generation AI racks through 2031.

The chip firm also signed a deal with Anthropic to provide the AI startup access to about 3.5 gigawatts of AI computing capacity drawing on Google’s AI processors, starting in 2027.

Financial terms of the deals were not disclosed.

Shares of Broadcom rose about 3 per cent in extended trading.

Demand for custom chips such as Google’s tensor processing units (TPUs), used for AI workloads, has surged in recent years as businesses seek alternatives to Nvidia’s pricey graphics processors.

Reuters reported in December that Google was pushing to make its TPUs a viable alternative to Nvidia’s market-leading GPUs. TPU sales have become a crucial growth engine of Google’s cloud revenue as it seeks to prove to investors that its AI investments are generating returns.

SEE ALSO

Microsoft charts US$10 billion of outlays in AI-eager Japan

Broadcom sees over US$100 billion in AI chip sales by 2027 on robust custom chip demand

ByteDance developing AI chip, in manufacturing talks with Samsung: sources

DECODING ASIA

Navigate Asia in
a new global order

Get the insights delivered to your inbox.

Anthropic said on Monday that the new deal builds on the company’s commitment to invest US$50 billion in strengthening US computing infrastructure.

Demand for its AI model Claude has accelerated in 2026, with the startup’s run-rate revenue now surpassing US$30 billion, up from about US$9 billion at the end of 2025, it said. Anthropic said it trains and runs Claude on a range of AI hardware, including Amazon Web Services’ Trainium, Google TPUs and Nvidia GPUs.

Amazon remains Anthropic’s primary cloud provider and training partner. REUTERS