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Core News Facts
Alphabet and Broadcom have collaborated to develop tensor processing units (TPUs), which are now reportedly in talks for a potential multi-billion dollar sale to Meta Platforms. This deal would benefit both Alphabet and Broadcom, as the latter co-designed the TPUs and stands to gain from each sale.
Broadcom’s Q3 FY 2025 earnings saw $5.2 billion of its $15.9 billion total revenue stemming from AI-related sources. Management projects this segment will grow to $6.2 billion by Q4. Despite market excitement, Broadcom’s revenue is still not predominantly from AI, indicating potential risks in its core business overshadowing its AI pursuits.
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