Alphabet stock jumps as Google reportedly builds AI chip to boost Gemini efficiency

Google is developing a new AI server chip called Frozen v2 to boost efficiency of its Gemini AI models.

Frozen v2 permanently builds parts of Gemini's AI architecture into the chip to reduce calculations and data movement.

The chip could generate six to ten times more AI tokens per unit of electricity compared to Google's latest TPUs.

Google aims to deploy Frozen v2 in 2028 to address an internal shortage of AI computing power.

Alphabet shares rose about 3% after the report, though Google did not confirm the project and cautioned not every research becomes a product.