Alphabet, Google’s parent company, is designing a new server chip to help its internal Gemini models run more efficiently.

The new chip, internally called “Frozen v2,” is scheduled to launch sometime in 2028, The Information reported, citing anonymous sources. According to the report, the chip could be six to 10 times more efficient than Google’s existing AI chips, measured by the number of tokens generated per unit of energy.

In response to TechCrunch, the company did not directly confirm the report. He didn’t deny it either.

“Our teams are constantly researching and experimenting with new innovations to deliver maximum performance and efficiency to our users and customers,” Google told TechCrunch. “While not all projects make it to production, this rigorous exploration is critical to our entire 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.”

AI companies have increasingly looked to produce their own chips as a way to make their internal models work more efficiently and address the global shortage of AI computing power. Such efficiency has become a key selling point for technology companies, as concerns about AI spending have tempered the market euphoria that previously characterized the industry. At the same time, the companies are engaged in an ongoing attempt to move away from chipmaker Nvidia, which has historically dominated the AI ​​chip market and whose dominance has left major AI makers dependent on its hardware.

In June, OpenAI announced its first custom chip, an inference processor called Jalapeño. Earlier this month, Anthropic was reported to be discussing a new chip manufacturing partnership with Samsung.

Investors have previously worried about Alphabet’s huge planned expenses designed to help it develop its AI strategy. Earlier this year, Google said it plans to spend between $180 billion and $190 billion. With so much money at stake, the company needs to demonstrate that those investments will pay off.

News of the more efficient Frozen v2 chip appears to have appeased investors, giving Google a boost ahead of its earnings report later this week. Following the publication of The Information’s report, the company’s shares rose about 3% on Monday morning.