Intel Wins Major Google AI Chip Order, Nvidia Tests 18A Process

Intel Corporation (NasdaqGS:INTC) announced a major manufacturing win from Alphabet's Google (NasdaqGS:GOOGL) to produce over 3 million tensor processing units (TPUs) for AI workloads, with production expected to begin in 2028. This represents Intel Foundry's largest external manufacturing commitment to date for advanced AI chips.

Deal Details

The order covers more than 3 million next-generation TPUs, bolstering Intel Foundry's position as a serious contender in the advanced chip contract manufacturing market. The financial terms were not disclosed, but the deal marks a significant milestone for Intel's turnaround strategy.

Nvidia Trials

Separately, Nvidia is conducting early trials on Intel's 18A process technology and advanced packaging for potential future GPU products. If successful, this could open the door to a major collaboration between the two companies.

Context

The news comes as Intel seeks to revive its foundry business after years of focusing on internal manufacturing. Winning Google's order is a notable achievement, but the key challenge remains executing production on schedule.

What It Means for Investors

The deal boosts confidence in Intel's ability to compete in advanced manufacturing, but the company still needs to prove it can deliver high-volume, high-quality production. The Nvidia trials are an additional positive signal, though still in early stages.