This article first appeared on GuruFocus.
Alphabet (GOOGL, Financials) is increasing AI hardware investment. In order to reduce its dependency on Nvidia, which dominates the AI chip market, the business is aggressively growing its AI chip program and submitting hundreds of new patents.TrendForce data released with Nikkei shows that Google filed about 400 TPU patents in 2023, roughly treble the amount from five years earlier. Amazon, Apple, and Microsoft submitted less than 100 TPU patents within the same time.The spike shows Google’s commitment to AI infrastructure management. Analysts predict 2026 TPU sales to climb over 40% as cloud companies adopt in-house chips to reduce money and enhance performance.Google’s partners Broadcom (AVGO) and MediaTek are increasing Taiwan Semiconductor Manufacturing Co. manufacturing to satisfy demand. TSMC’s 3 nanometer TPU will start commercial production in late 2026, with millions of units anticipated in the following years.Google’s semiconductor aspirations go beyond data center power. Anthropic, an AI firm, has obtained access to 1 million Google TPUs for tens of billions of dollars, and Meta Platforms (META) is apparently in discussions to deploy them in 2027.Google is expanding its internal initiative into a new commercial line. Alphabet shares increased 0.69% to $315.15 on Friday as investors predicted its in-house chip plan may change its AI ecosystem position.