GoKawiilAlphabet shares climbed 3% on Monday after The Information reported the company is developing a new server chip, internally dubbed "Frozen v2," designed to run Gemini models more efficiently.
The chip would permanently embed parts of Gemini's architecture directly into the silicon, reducing the number of calculations and amount of data movement required to answer queries, according to the news outlet.
Alphabet told CNBC in a statement that its teams are "constantly researching and experimenting with new innovations to deliver maximum performance and efficiency for our users and customers" and that "while not every project moves into production, this rigorous exploration is central to our full stack approach."
"By co-designing our hardware and software from the ground up, we ensure our systems are integrated and highly optimized for real-world workloads," continued the statement.
Google engineers project it could serve between six and ten times more tokens per unit of power than the company's newest AI chips, called TPUs, or tensor processing units, The Information said. Frozen would become a more specialized branch of Google's custom-chip portfolio rather than replace its general-purpose TPUs.