Alphabet and Marvell are in talks to develop new artificial intelligence chips, aiming to challenge Nvidia's dominance in the AI hardware market. The collaboration focuses on creating two tensor processing units (TPUs) designed to enhance AI workload efficiency. One chip will function as a processing-in-memory unit, complementing Google's existing TPUs, while the other will be a new TPU tailored for inference tasks. This strategic move is part of Alphabet's efforts to position its proprietary chips as competitive alternatives to Nvidia's GPUs. Following the announcement, Marvell's shares surged over 4.8%, while Alphabet's shares saw a modest increase. The potential partnership is expected to integrate Marvell more deeply into the supply chain of major cloud service providers, attracting investor interest. As tech companies seek diversified chip sources for data centers and AI models, Alphabet's collaboration with Marvell represents a significant step in advancing its AI hardware capabilities.