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Google's cloud business is experiencing strong growth, fueled by companies adopting its AI and AI infrastructure services. The expansion has contributed to the tech giant reporting record profits. The company has justified its substantial spending on artificial intelligence through the performance of its cloud division.
Google is developing a specialized server chip informally called Frozen v2 that integrates its Gemini AI model architecture directly into the silicon, scheduled for 2028. According to internal sources, the chip could be 6 to 10 times more efficient than current TPUs. The design aims to drastically cut Google's AI inference costs and potentially provide a price advantage over competitors like OpenAI and Anthropic. Google is also shipping three new Gemini Flash models, including Gemini 3.6 Flash, which uses up to 65 percent fewer tokens, and a cybersecurity model called Gemini 3.5 Flash Cyber available to governments and select partners.
The European Union has ordered Google to give rival AI assistants and search engines greater access to key parts of Android and Google Search as part of enforcing the bloc's digital antitrust rules. Google must begin sharing search data by January 2027 and implement changes to Android by July 2027. The rulings stem from technical regulatory proceedings.