Google unveils custom Arm-based chips, following similar efforts at rivals Amazon and Microsoft [Video]

Google is trying to make cloud computing more affordable with a custom-built Arm-based server chip. At its Cloud Next conference in Las Vegas on Tuesday, the company said the new processor will become available later in 2024.

With the new Arm-based chip, Google is playing catch-up with rivals such as Amazon and Microsoft, which have been employing a similar strategy for years. The tech giants compete fiercely in the growing market for cloud infrastructure, where organizations rent out resources in faraway data centers and pay based on usage.

Google parent Alphabet still derives three-quarters of revenue from advertising, but cloud is growing faster and now represents almost 11% of company revenue. The segment, which contains corporate productivity applications, is also profitable. Google held 7.5% of the cloud infrastructure market in 2022, while Amazon and Microsoft together controlled around 62%, according to Gartner estimates.

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