Alphabet stock surged as much as 3% on Monday following news that Google is developing a new server chip to optimize its Gemini AI model.
Alphabet stock rose as much as 3% on Monday as investors reacted to news that Google is developing a new server chip to optimize its Gemini AI model. The new semiconductor, named Frozen v2, is expected to launch as early as 2028. The hardware is distinct from Google's current tensor processing units. According to reports from The Information, the new chip could run six to 10 times more efficiently than current custom chips while providing faster responses to user queries. By developing its own semiconductor hardware and AI models, Google aims to achieve a fully integrated approach to the growing technology sector. Investors are now looking toward Alphabet's quarterly results, due this Wednesday, to find clues regarding continued AI infrastructure spending and the return on investments. This news follows a report from last week suggesting that Google was behind schedule in delivering Gemini 3.5 Pro, its most powerful AI model.