Recently, there has been a significant surge in demand for Google's AI chip, the TPU. To guarantee a steady supply of its next - generation offerings, Google has decided to double the order quantity for its upcoming 'TPU v7e' chip, which will be manufactured by MediaTek.

Google is strategically broadening its supply chain by bringing MediaTek on board as a new partner and implementing a 'dual - supplier' approach (featuring Broadcom and MediaTek). The key objective behind this move is to capitalize on MediaTek's strong ties with TSMC. By doing so, Google aims to secure CoWoS (Chip - on - Wafer - on - Substrate) quotas and access to advanced manufacturing process capacities. This, in turn, will enable Google to expedite the time - to - market for the TPU v7e and pose a formidable challenge to NVIDIA.

In addition, the AI unicorn Anthropic has inked a staggering $10 billion deal to deploy infrastructure based on Google's TPUs. Moreover, Meta is also in the process of exploring the possibility of introducing TPUs into its operations. These developments clearly indicate that Google's TPUs have already carved out a substantial niche and wield significant influence in the customized chip sector.