Alphabet's cloud computing event on Tuesday touted artificial intelligence partnerships and products that could give a boost to Google stock. Google announced a custom AI chip using Arm Holding's semiconductor architecture, which it will make available to cloud customers.
Also, the Google Cloud Next event runs from April 9 to April 11.
On the cloud infrastructure front, Google unveiled a new "A3 Mega" AI processor using Nvidia's H100 technology. Google said it plans to use Nvidia's next-generation Blackwell platform in early 2025. But Google also is expanding in-house AI chip development.
Custom Arm-Based AI Chip
On Google's blog, cloud chief executive Thomas Kurian also announced Google's first custom AI chip using Arm's AI architecture. The Google Axion, Arm-based device is designed for computer servers in high-performance internet data centers.
The custom, Arm-based AI chip is expected to be available in late 2024. Google won't be selling the chips directly to customers. Instead, they will be available for cloud services that businesses can rent and use.
Google has developed five generations of its Tensor processing unit chips since 2015. But it hasn't sold those Tensor devices directly to external customers.
Other big tech customers of Nvidia — Amazon.com, Microsoft and Meta Platforms also have designed their own internal data center chips but they do not sell them on the merchant market.
Google, Arm, Qualcomm, Intel and Samsung are part of a new tech group aiming to provide an alternative to Nvidia's AI software development platform, according to a recent report. The group is called the Unified Acceleration Foundation.
On the stock market today, Google stock rose 0.4% to 155.20 in afternoon trading.
Shares in Arm initially rose, then fell 2.3% to near 126.27. Nvidia stock retreated 3.2% to 843.14.
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"Today, we are announcing new or expanded partnerships with Bayer, Cintas, Discover Financial, IHG Hotels & Resorts, Mercedes-Benz, Palo Alto Networks, Verizon Communications, (advertising firm) WPP, and many more," said Kurian in the blog.
Other customers expected to take part in the event include Walmart, Ford, Deloitte, and Wayfair.
Google Stock: Gemini Licensing Key
Amid the emergence of generative AI, tech companies are racing to build training models that use proprietary company data. Google aims to license its Gemini large language model to enterprises and governments globally.
In addition, Google and cybersecurity firm Palo Alto Networks expanded their cloud computing alliance.
Palo Alto Networks on Tuesday said it has "extended and increased its commitment to Google Cloud with a 10-figure, multiyear commitment and by naming Google Cloud its AI and infrastructure provider of choice."
In June 2018, Palo Alto brought in Nikesh Arora, a former top executive at Alphabet, as its chief executive to make strategic changes.
Through acquisitions, Palo Alto Networks has expanded from firewall network security into endpoint security and vulnerability management. Endpoint tools detect malware on laptops, mobile phones and other devices that access corporate networks.
Google Cloud Vs. Amazon And Microsoft
Meanwhile, Google first quarter earnings are due in late April.
In the December quarter, Google said cloud-computing revenue rose nearly 26% to $9.19 billion, topping estimates of $8.94 billion. Google's cloud-computing business posted 22% growth in the September quarter.
Also, Microsoft's generative AI partnership with startup OpenAI has given its cloud computing business a boost. Amazon Web Services, part of Amazon.com, is the biggest provider of cloud services.
Further, Google stock has advanced nearly 11% in 2024. Also, Google moved back into a buy zone on Monday with an entry point of 153.78.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.
