Google Is Building a Frozen v2 Chip to Run Gemini More Efficiently

Alphabet, Google's parent company, is designing a new server chip meant to make its own Gemini models run noticeably more efficiently. The news was reported by The Information, citing anonymous sources.

The project's internal name is “Frozen v2.” The chip is slated for release in 2028. According to the sources, it could turn out to be 6–10 times more efficient than Google's existing chips, if efficiency is measured in the number of tokens generated per unit of energy consumed.

In a response to TechCrunch, the company neither confirmed the report directly nor denied it. Google limited itself to generalities: its teams are “constantly researching and experimenting with new solutions,” not every project makes it to production, and co-designing hardware and software “from the ground up” allows for high optimization for real-world workloads.

The Race for In-House Chips

Developing their own processors has become a common trend among AI companies. This is how they hope to make running their models cheaper and to get around the global shortage of computing power. On top of that, the industry is looking to reduce its dependence on Nvidia, which has historically dominated the AI chip market and kept the major players tethered to its hardware.

Google is not alone here. In June, OpenAI unveiled its first custom chip — an inference processor called Jalapeño. And earlier this month, reports emerged that Anthropic is discussing a chip-manufacturing partnership with Samsung.

A Multibillion-Dollar Bet

Energy efficiency has become a key selling point as the market euphoria around artificial intelligence has given way to concerns about colossal spending. Investors had already reacted nervously to Alphabet's plans: this year the company intends to spend between 180 and 190 billion dollars on advancing its AI strategy. With sums like these, it needs to prove that the investments will pay off.

The news of a more efficient Frozen v2 appears to have reassured the market ahead of the company's quarterly report. Following The Information's publication, Alphabet shares rose roughly 3% on Monday morning.

Source: TechCrunch