Google and Intel Deepen AI Infrastructure Partnership for Custom Chip Development

Google and Intel announced an expanded multiyear partnership on April 9, 2026, to co-develop custom ASIC-based infrastructure processing units (IPUs) and continue Google Cloud's use of Intel Xeon 6 processors for AI, cloud, and inference tasks. The partnership, which began in 2021, addresses growing demand for CPUs amid a worldwide chip shortage, as more companies focus on CPUs crucial for running AI models rather than just GPUs used for training. Intel declined to share pricing details for the deal. The announcement comes as competitors like SoftBank-owned Arm Holdings recently unveiled the Arm AGI CPU, its first self-produced chip responding to the global CPU crunch.

Google and Intel's Expanded AI Infrastructure Partnership

• ▪Google has used Intel's various Xeon processors for decades
• ▪Google and Intel announced an expanded multiyear partnership on April 9, 2026
• ▪Google Cloud will continue utilizing Intel AI infrastructure under the expanded partnership
• ▪Google Cloud will use Intel's Xeon processors, including Intel's latest Xeon 6 chips, for AI, cloud, and inference tasks
• ▪Intel declined to share any information regarding pricing for the expanded partnership deal

Growing Industry Demand for CPUs in AI Infrastructure

• ▪GPUs are used for developing and training AI models
• ▪More companies have been turning their focus to CPUs in recent months due to a growing shortage for the chips
• ▪The AI industry is experiencing hunger for CPUs
• ▪Scaling AI requires balanced systems with CPUs and IPUs central to delivering performance, efficiency and flexibility for modern AI workloads
• ▪CPUs are crucial for running AI models and within general AI infrastructure
• ▪SoftBank-owned Arm Holdings recently announced the Arm AGI CPU, the first chip that Arm Holdings has produced itself, amid a worldwide crunch for CPUs

Custom Chip Development and Infrastructure Processing Units

• ▪Google and Intel will expand the co-development of custom infrastructure processing units (IPUs)
• ▪The expanded chip development partnership between Google and Intel will focus on custom ASIC-based IPUs
• ▪Infrastructure processing units (IPUs) help accelerate and manage data center tasks by offloading them from CPUs
• ▪The chip development partnership between Google and Intel started in 2021

Perspective of Intel

• ▪Intel emphasizes that scaling AI requires balanced systems rather than GPU-only approaches

Perspective of Google

• ▪Google frames its continued use of Intel Xeon processors as building on decades of established infrastructure relationships