Azernews.Az

By Alimat Aliyeva

Alphabet Inc.'s Google is seeking to expand its presence in the artificial intelligence (AI) chip market by encouraging major clients to install its Tensor Processing Units (TPUs) directly in their own data centers, according to a report by The Information, citing sources familiar with the discussions, Azernews reports, citing foreign media.

The report states that Google has approached Meta Platforms Inc. and several financial institutions about extending TPU usage beyond Google Cloud services to include hardware integration at client facilities. The move is seen as a way to broaden adoption of Google’s AI chips and reduce reliance on Nvidia Corp., which currently dominates the market.

This initiative aligns with Google’s intensified AI strategy, which includes announcing a cloud partnership with NATO on Monday and unveiling Gemini 3, its latest AI model, last week.

Analysts suggest that offering TPUs for on-premises integration could reshape the AI hardware landscape, giving enterprises more control over processing power while fostering competition with Nvidia. Some even speculate that this could accelerate the adoption of AI in industries like finance, healthcare, and defense, where large-scale computation and data privacy are critical.

Google’s push reflects a broader trend in the AI sector: companies are increasingly seeking specialized hardware to optimize performance, rather than relying solely on cloud-based solutions, signaling a new phase of AI infrastructure evolution.