Alphabet is reportedly developing an in-house server chip, internally known as “Frozen v2,” that could arrive as early as 2028.

 

According to reports, the chip could deliver 6–10× greater efficiency than Google’s existing AI chips, measured by the number of tokens generated per unit of power.

 

Google has not directly confirmed the project, saying its teams are continuously exploring new hardware and software innovations to improve performance and efficiency.

 

The move reflects a broader industry trend: AI companies are increasingly designing their own chips to:

 

Reduce AI computing costs

Improve energy efficiency

Scale AI models more effectively

Reduce reliance on Nvidia hardware

 

As AI infrastructure costs continue to rise, the race is no longer just to build smarter models—it’s also to build the most efficient chips to run them.

 

In June, OpenAI announced its first custom chip, an inference processor dubbed Jalapeño. Earlier this month, it was reported that Anthropic was discussing a new chipmaking partnership with Samsung.

 

Investors have previously worried about Alphabet’s massive planned expenditures designed to help it build out its AI strategy. Earlier this year, Google said that it plans to spend between $180 billion and $190 billion. With so much money at stake, the company needs to prove that those investments will pay off.

 

News of the more efficient Frozen v2 chip appears to have assuaged investors, giving Google a boost ahead of its earnings report later this week. Following publication of The Information’s report, the company’s stock climbed some 3% on Monday morning.