Alphabet eyes Frozen v2 AI chip as shares rise before Q2 earnings

Shares rose about 3% after reports said Google is developing a Gemini-specific chip for possible 2028 deployment that could improve power efficiency by six to 10 times, ahead of Wednesday earnings.

Summary

Alphabet shares rose about 3% after reports said Google is developing an AI chip called Frozen v2 aimed at running Gemini models far more efficiently, with engineers projecting six to 10 times more tokens per watt than current TPUs and a possible 2028 deployment. The reported design would hardwire part of Gemini’s architecture into silicon to cut data movement and power use, reflecting Google’s effort to ease compute shortages, lower serving costs and reduce reliance on Nvidia hardware. The move came ahead of Alphabet’s Wednesday second-quarter earnings, as investors watched AI infrastructure spending and capacity constraints.

Terms & Concepts
  • Gemini: Google’s family of AI models.
  • TPUs: Google’s tensor processing units, chips built for AI workloads.
  • tokens per watt: A measure of how much AI output a system can generate for each unit of electricity consumed.