Google Copies Apple's Chip Strategy for AI Dominance

Google is pursuing Apple-style vertical integration by designing its own AI chips and seeking a direct manufacturing relationship with Taiwan Semiconductor, bypassing longtime partners Broadcom and MediaTek. The move mirrors Apple's decade-long strategy of building in-house silicon, which helped the iPhone maker achieve gross margins above 49%. Alphabet's Google Cloud revenue surged 63% year over year to $20 billion in Q1 2026, fueled by AI infrastructure demand. With $174 billion in trailing operating cash flow and existing TPU infrastructure already deployed at scale, Google is positioned to lower AI costs while tightening control over its technology stack.