This article first appeared on GuruFocus.
Intel (NASDAQ:INTC) and Google (NASDAQ:GOOG) are getting a bit more serious about working together on the part of AI most people don’t see but that actually matters a lot: the infrastructure behind it.
The two just signed a multiyear deal to build out next-gen AI and cloud systems using Intel’s Xeon chips and custom infrastructure processors. In simple terms, they’re trying to make AI workloads run smoother, faster, and cheaper at scale.
Here’s how it works. Instead of dumping everything onto the main CPU, these IPUs take over background tasks like networking, storage, and security. That frees up the CPU to focus on actual compute-heavy AI work. The result should be better performance and more efficient use of power two things that are becoming critical as AI workloads explode.
