Google Orders 3 Million Custom AI Chips From Intel for 2028 (NASDAQ: GOOGL)

Google has placed an order with Intel to manufacture more than three million tensor processing units slated for 2028, according to a report from The Information citing people with direct knowledge of the discussions. The move signals a significant commitment by Alphabet (NASDAQ: GOOGL) to diversify its AI chip supply chain beyond existing manufacturers. Shares last traded at $363.34 on Monday, June 8, 2026, down $5.19 on the session.

The Intel TPU Order: What We Know

• Google's order with Intel covers more than 3 million tensor processing units, according to The Information.
• The chips are targeted for production in 2028, suggesting a multi-year supply planning horizon.
• The TPUs in question are described as in-house chips, consistent with Google's long-running custom silicon program.
• Nvidia has not placed an order with Intel but has been evaluating whether Intel's technology can be used to make a processor combining four graphics chips into a single unit, per The Information's reporting.

Why It Matters

By contracting Intel to manufacture its proprietary TPUs, Google is expanding the number of foundry partners capable of producing its custom AI accelerators. The scale of the reported order, more than three million units, points to the depth of compute infrastructure Alphabet is building out to support its AI workloads and cloud services.

The reported move also comes as Intel seeks to establish its foundry business as a credible alternative to TSMC for advanced AI chip production. For Alphabet, spreading manufacturing across multiple partners reduces concentration risk in its supply chain, particularly as demand for AI compute capacity continues to grow across its products and platforms.

Wall Street View

Bank of America reiterated a Buy rating on Alphabet on June 4, 2026, citing AI capital expenditure demand as a key factor in its conviction. The broader analyst community remains constructive: as of June 1, 2026, the consensus stood at 19 Strong Buy, 42 Buy, and 9 Hold recommendations, with zero Sell or Strong Sell ratings. Alphabet's net margin of 37.9% and revenue growth of 21.8% year-over-year (TTM, may not reflect the latest quarter) provide the financial foundation to sustain large-scale infrastructure commitments of this kind.

Investor Takeaway

The reported Intel TPU order underscores Alphabet's long-term bet on proprietary AI silicon as a core competitive asset, with a manufacturing commitment large enough to require a dedicated foundry partnership extending into 2028. Wall Street's near-unanimous Buy-side consensus reflects confidence that Alphabet's capital allocation toward AI infrastructure is strategically sound. Investors should note the order has not been confirmed through an official filing or company statement, and the details remain attributed solely to The Information's sources.