This article first appeared on GuruFocus.
Intel (NASDAQ:INTC) shares rose about 2% on Thursday after Google (NASDAQ:GOOG) said it would deploy multiple generations of the chipmaker’s processors to run artificial intelligence workloads inside its data centers.
Intel gained as the expanded partnership signals growing demand for central processing units in a market largely shaped by specialized graphics chips.
The internet giant plans to use Intel’s newest Xeon 6 processors for both AI training and inference operations. Intel executives have noted that as AI applications become more complex, balanced computing systems that pair accelerators with robust general-purpose chips are increasingly critical. Intel has supplied Google with server processors dating back nearly three decades.
Google’s chief technologist for AI infrastructure said the Intel product roadmap provides confidence that performance and efficiency targets can be met. Intel CEO Lip-Bu Tan added that effective AI scaling requires more than just accelerators. Intel did not disclose financial terms or a rollout timeline for the arrangement.
The companies also reaffirmed their ongoing collaboration on infrastructure processing units, a type of programmable chip that offloads networking and storage tasks from main processors.
