Alphabet's Google developing new chip for AI model, stock jumps

Alphabet's Google is developing a new server chip called Frozen v2, designed to optimize its Gemini AI model and run six to ten times more efficiently than current custom chips, with a potential launch as soon as 2028, according to The Information. The news sent Alphabet's stock up 3% on Monday, ahead of the company's quarterly results due Wednesday.

What happened: Alphabet's GOOG https://finance.yahoo.com/quote/GOOG , GOOGL https://finance.yahoo.com/quote/GOOGL/ stock surged 3% on Monday. What's behind the move: Google, the tech giant's arm, is developing a server chip designed to optimize its Gemini AI model, according to The Information. https://www.theinformation.com/articles/google-plans-new-frozen-chip-run-ai-models-efficiently Citing people familiar with the matter, the report stated that the new chip, called Frozen v2, could be launched as soon as 2028. The hardware is separate from Google's tensor processing units, or TPUs, which are already in production. The new semiconductor would run six to ten times more efficiently and respond to queries more quickly than its current custom chips. What else you need to know: Alphabet's Google has been developing its own semiconductor hardware and AI models to achieve a fully integrated approach to the booming technology. Investors will be eyeing Alphabet's quarterly results due this Wednesday for clues about continued AI infrastructure spending, as well as any commentary on return on investments. Last week, Bloomberg reported that Alphabet was behind schedule in delivering Gemini 3.5 Pro, its most powerful AI model. Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines ferre . Click here for in-depth analysis of the latest stock market news and events moving stock prices Read the latest financial and business news from Yahoo Finance