According to a June 8 report from The Information, Google and Nvidia are exploring Intel as a potential alternative for manufacturing advanced AI chips.
The report also claimed that Alphabet’s Google has placed an order with Intel to manufacture more than 3 million of its custom AI chips, also known as Tensor Processing Units, for production in 2028.
Although it wasn’t reported, it’s worth checking whether Alphabet’s 80-billion-dollar fundraising is part of this three-million PSU order from Intel. If confirmed, Google’s reported AI chip order and Nvidia’s reported interest in Intel could provide a boost to Intel’s foundry business.
Bloomberg senior analyst Anurag Rana also said that if Intel can manufacture AI chips, it would be “good news for the entire space.”
On Bloomberg TV, one of the panellists asked Anurag Rana, “Does Intel also have the capacity, though, to meet any shortfalls that TSMC might have?” Rana’s reply was, “Yeah, I was a bit surprised at that because, you know, it seemed like TSMC was the only one who could do some of these, you know, advanced-level chip manufacturing.”
“But if Intel can do it, I think this is going to be good news for the entire space because right now we are not constrained by anything but the supply of chips, power, and everything that’s hardware and chip-related things. It’s not dollars, it’s not demand,” he added.
NVIDIA’s interest in Intel’s manufacturing capabilities is not entirely new. Reports dating back to December 2025 indicated that Nvidia had tested Intel’s advanced 18A chipmaking process.
In September 2025, Nvidia announced a $5 billion investment in Intel. With this investment, it acquired roughly a 4% stake and became one of the company’s largest shareholders. The move was widely viewed as a vote of confidence back then in Intel’s turnaround efforts.
The testing was viewed as an important vote of confidence in Intel’s efforts to compete with Taiwan Semiconductor Manufacturing Co. (TSMC), which is the dominant producer of advanced AI chips.
And now, from that point, Google’s massive chip manufacturing order from Intel signifies that the chip makers want to move away from their dependence on TSMC.
According to Counterpoint Research, it held about 72% of the global pure-play foundry market in late 2025, far ahead of competitors such as Samsung and Intel. Per the Taipei Times, TSMC controls roughly 69.9% of the global foundry market in 2025.
This heavy dependence and control over chip-making, which is nothing but the future of technology, might be pushing giants like Google and Nvidia to take a step closer to “good news” (less dependency on TSMC), as Mr. Rana described.