Alphabet, Google’s parent company, is reportedly developing a new server chip engineered to significantly enhance the operational efficiency of its in-house Gemini AI models.
This upcoming chip, internally referred to as “Frozen v2,” is projected for a 2028 release, according to a report from The Information, which cited anonymous sources. The report suggests a substantial improvement in efficiency, estimating the chip could be between six and ten times more efficient than Google’s current AI chips, a measure based on the number of tokens generated per unit of power.
When contacted by TechCrunch, the company offered a nuanced response, neither directly confirming nor denying the specifics of the report.
"Our teams are constantly researching and experimenting with new innovations to deliver maximum performance and efficiency for our users and customers," Google stated to TechCrunch. The company added, "While not every project moves into production, this rigorous exploration is central to our full stack approach. By co-designing our hardware and software from the ground up, we ensure our systems are integrated and highly optimized for real-world workloads."
The trend of AI companies designing their own chips is gaining momentum, driven by the dual objectives of optimizing the performance of their proprietary models and addressing global shortages in AI computing capacity. Such efficiency has become a crucial selling point for tech firms, particularly as growing concerns over AI expenditures have tempered the market euphoria that once characterized the industry. Simultaneously, these companies are actively striving to reduce their reliance on chipmaker Nvidia, which has historically dominated the AI chip market and whose strong position has left major AI developers dependent on its hardware.
This strategic shift is evident across the sector: in June, OpenAI unveiled its first custom chip, an inference processor dubbed Jalapeño. Earlier this month, reports indicated that Anthropic was engaged in discussions with Samsung regarding a new chipmaking partnership.
Investors have previously expressed apprehension regarding Alphabet’s massive planned expenditures aimed at bolstering its AI strategy. Earlier this year, Google announced intentions to invest between $180 billion and $190 billion. With such significant capital at stake, the company is under pressure to demonstrate a tangible return on these substantial investments.
However, the news of the more efficient Frozen v2 chip appears to have reassured investors, providing a positive momentum for Google ahead of its earnings report later this week. Following the publication of The Information’s report, the company’s stock climbed approximately 3% on Monday morning.
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