Alphabet, its own AI chip 10 opens a new revenue stream through years of investment
Alphabet 10 is lowering AI costs with its in-house AI chip TPU, which it has developed for more than ... 8Sales of a TPU generation could become a new source of revenue, according to an assessment.
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Alphabet 10 has been developing its own AI chips for more than ... . These chips are called tensor processing units (TPUs). The company uses the technology as a core competitive advantage in its AI infrastructure.
Alphabet's TPUs have now reached 8 generations. The latest products are divided according to whether they are used to train AI or to generate answers in actual services. This structure is used to lower AI operating costs.
Alphabet is moving toward using TPUs beyond its own internal services. The company has begun selling the chips directly through partners. This move could become a new source of revenue for Alphabet.
Semiconductor and data center costs are a major burden in the AI race. Alphabet can reduce its reliance on external chips by using its own chips. It was also noted that search, cloud, and AI model development are all operated within one company.
The forward P/E, which measures how many times earnings a stock is priced at, was 28presented as a multiple. The forward P/E is a measure of whether a stock is expensive or cheap based on the earnings it is expected to generate in the future. The view was expressed that Alphabet’s AI capabilities are not yet fully reflected in its share price.
This report discusses how Alphabet’s AI competitiveness extends beyond a simple chatbot service. The key point is that its own chips, cloud, and AI services are integrated. The market will look at how much this structure translates into revenue going forward.
Sources: The Motley Fool
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