Google partners with MediaTek to build cheaper AI chips, joining tech giants moving to reduce their reliance on Nvidia

Google is partnering with Taiwan’s MediaTek to develop the next version of its AI chips, Tensor Processing Units (TPUs), set for production next year, according to a report from The Information, citing three sources familiar with the matter.

Despite this new collaboration, Google isn’t ending its relationship with Broadcom, the chip designer it has worked with for several years. An employee from Broadcom confirmed the ongoing partnership.

This shift aligns with a broader industry trend, as companies like Amazon, Meta, and Microsoft push to design their own AI chips. The goal? Reduce dependence on Nvidia’s GPUs and ASICs, which currently dominate the AI chip market.

MediaTek stood out to Google for two key reasons: its close relationship with chip manufacturing giant TSMC and its more competitive pricing compared to Broadcom, The Information reported.

Google’s investment in TPUs is substantial. Research firm Omdia estimates the company spent between $6 billion and $9 billion on TPUs last year, based on Broadcom’s AI semiconductor revenue targets.

This partnership signals Google’s broader strategy to gain more control over its AI hardware while cutting costs and reducing reliance on external suppliers like Nvidia.

Tech Companies Are Building Their Own AI Chips to Reduce Reliance on Nvidia

With this partnership, Google joins a growing list of tech giants working to reduce their reliance on Nvidia. On February 5, 2025, reports revealed that OpenAI was nearing completion of its first custom AI chip, aiming to reduce reliance on Nvidia. This wasn’t a side hustle—it was a clear strategy to fuel their next-gen models without leaning on Nvidia hardware. For a company with huge AI ambitions, this was a big move. If OpenAI doesn’t need Nvidia, who does?

“OpenAI is moving forward with its plan to reduce its reliance on Nvidia by creating its own AI chips. The company is expected to finalize the design for its first custom chip in the coming months and send it to Taiwan Semiconductor Manufacturing Co (TSMC) for production.”

On March 11, Meta began testing its first in-house AI chip, designed for both training and inference, while cutting the sky-high costs that come with Nvidia’s GPUs. Meta’s goal? Full control over its AI operations without handing billions to an external supplier. It’s a calculated move that’s part of a bigger shift—hyperscalers looking to cut loose from Nvidia’s orbit. For Meta, this chip is their ticket.

The shift isn’t limited to the tech giants. Amazon has been quietly advancing its Trainium chips, supported by its investment in Anthropic—an AI company that already uses Google’s TPUs for most of its inference. Startups like Cerebras are stepping up, too, with specialized chips that power models like Perplexity’s Sonar and Mistral’s chatbot. The trend is moving toward efficiency, not brute force, and that’s a threat to Nvidia’s premium margins. If Google can run Gemma 3 on one chip, why should others pay for Nvidia’s hardware fleet?

Founded in 1997, MediaTek is a Taiwanese semiconductor company that designs chips for smartphones, smart devices, and automotive systems. Known for its Dimensity series, MediaTek supplies processors to brands like Xiaomi, Oppo, and Vivo. The company also works closely with Taiwan Semiconductor Manufacturing Company (TSMC) for chip production. Its focus on cost-effective solutions has made it a major player in the global chip market.