It is reported that Google (GOOGL.US) is partnering with AMD (AMD.US) to create the next generation of AI chips, with Wedbush stating that "the industry may undergo significant changes."

According to Zhitong Finance APP, there have been recent reports that Google (GOOG.US, GOOGL.US) is collaborating with AMD (AMD.US) to develop its next-generation Tensor Processing Unit (TPU). Wedbush Securities believes that if this collaboration is true, it could trigger significant changes in the semiconductor industry.

Wedbush Securities analyst Matt Bryson wrote in a report: "If Google chooses to partner with AMD instead of Broadcom, Marvell Technology, or Intel (the latter of which has been highly vocal in such transformation projects recently), we believe this would be a noteworthy development. We also want to point out that this rumor itself highlights the importance of two key aspects: 1) ASIC design capabilities; 2) IP modules. This indicates that in an era where hardware resources are increasingly constrained, competition in the chip manufacturing sector is not a zero-sum game."

Semiconductor research firm SemiAnalysis believes that Google will leverage AMD to design the tenth generation TPU, fully utilizing AMD's CPU experience and its technological accumulation in packaging and networking. Google released two eighth-generation TPUs in April this year—TPU v8t for AI model training and TPU v8i for inference operations.

It is worth noting that although traditional large language model (LLM) training is still dominated by accelerators, the growing demand for inference tasks and reinforcement learning in agent-based AI is deepening the market's reliance on general computing resources. Therefore, some analysts speculate that Google may intend to create a tenth-generation TPU specifically optimized for reinforcement learning and agent workloads, with AMD providing some of the building blocks.

On Tuesday, before the U.S. stock market opened, Google fell nearly 1%, and AMD dropped over 3%