Google Bolsters Data-Center Partnerships Amid Nvidia Rivalry

Google is stepping up its financial support for data-center partners in an effort to boost sales of its AI chips and compete with Nvidia.

The move comes as Google mulls a $100 million investment in cloud-computing company Fluidstack, which values the startup at around $7.5 billion, according to a report from the Wall Street Journal.

Google is also speaking with other data-center partners about increasing its financial commitments, hoping for additional TPU demand, as part of its efforts to expand market potential and increase adoption of its AI chips.

The tech giant's cloud-computing division has reportedly revived conversations about restructuring the company's TPU team into a stand-alone unit, which could broaden investment options and attract outside capital. However, such a separation would face obstacles, including the cloud division's heavy reliance on Nvidia chips.