Google Just Went All in on Its Deal With Intel

Alphabet has placed an order for 3 million Tensor Processing Units with Intel for delivery through 2028, marking a strategic shift to diversify AI chip supply beyond TSMC. The deal validates Intel's contract manufacturing push and secures capacity for Google's expanding AI infrastructure needs.

Google's new TPU architectures—8t for training and 8i for inference—deliver 2-4x faster performance at 30% lower costs compared to prior generations. The company is now selling TPUs to select external customers, opening a new revenue stream beyond internal use. Google's backlog has nearly doubled to $460 billion, reflecting surging demand for AI compute capacity.

For Intel, the 3 million unit order through 2028 provides multi-year revenue visibility in its foundry business at a time when the chipmaker is working to regain manufacturing leadership. The deal adds a marquee customer alongside existing foundry wins and demonstrates progress in CEO Pat Gelsinger's turnaround strategy.