# Alphabet Developing More Efficient AI Chip Google's new chip aims to run AI models faster and more efficiently. - **Source:** [US Top News and Analysis](https://brifing.si/source/635540e9-943e-450d-ae52-ae0bfe3b67eb) - **Published:** 2026-07-20 - **Topic:** [Data & AI](https://brifing.si/c/data-ai) - **Original article:** - **On Brifing:** https://brifing.si/s/479a217a-d73f-44cb-95ce-ffc220f311f1 ## Alphabet's New AI Chip Alphabet is developing a new server chip, dubbed 'Frozen v2,' to run Gemini models more efficiently. The chip aims to reduce computation and data movement, enhancing overall performance. ## Hardware and Software Integration Google is co-designing hardware and software to optimize systems for real-world workloads. This approach ensures AI models run faster and more efficiently. ## Advantages Over TPUs The new chip can process six to ten times more tokens per unit of power compared to Google's current AI chips, TPUs. This represents a significant performance boost. ## Addressing Compute Shortage Google is developing this chip to address an internal compute shortage. This shortage had forced Google Cloud to turn away external business and led to a deal with SpaceX. ## Flexibility and Compatibility The new chip will only work with future Gemini models, requiring Google to maintain its underlying architecture. This trade-off limits flexibility but ensures optimization. ## Competition and Future Google faces increasing competition in AI. Chinese models are gaining traction among U.S. companies, and Google has lost researchers to rivals. The new chip could be a crucial step in staying competitive. ## Sources covering this story - https://www.cnbc.com/2026/07/20/alphabet-googl-stock-ai-chip-report.html — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._