Broadcom locks in Google chip deal through 2031
Broadcom signed a long-term agreement with Google to develop and supply custom artificial intelligence chips through 2031. The deal covers future generations of AI processors and components for Google's next-generation AI racks. Financial terms were not disclosed.
Broadcom shares rose about 3% in extended trading following the announcement on Monday.
Custom chips gain traction against Nvidia
The agreement reflects growing demand for alternatives to Nvidia's graphics processors. Businesses increasingly seek custom chips like Google's tensor processing units (TPUs) for AI workloads, citing cost concerns with Nvidia's offerings.
Google has been pushing TPUs as a viable alternative to Nvidia's market-leading GPUs. TPU sales have become a key growth driver for Google's cloud revenue as the company works to demonstrate returns on its AI investments.
Anthropic secures computing access
Broadcom also signed a deal with Anthropic to provide the AI startup access to about 3.5 gigawatts of AI computing capacity using Google's processors, starting in 2027. Anthropic said the arrangement supports its $50 billion commitment to strengthen U.S. computing infrastructure.
Anthropic's AI model Claude has accelerated in 2026, with the startup's run-rate revenue now surpassing $30 billion, up from about $9 billion at the end of 2025.
Anthropic trains and runs Claude on multiple hardware platforms, including Amazon Web Services' Trainium, Google TPUs, and Nvidia GPUs. Amazon remains the startup's primary cloud provider and training partner.
For IT and development teams, understanding AI for IT & Development and Generative AI and LLM infrastructure is increasingly essential as custom chips reshape the competitive landscape.
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