[chillee]

One of the big things this article misses is that Google pays Broadcom a significant amount for the actual chip design, also around a 70% margin.

Google certainly has infra/cost advantages, but it's nowhere near 10x.

[mmaunder]

Mind sharing your source on that? I’ve been trying to find one.

Edit: Specifically the nature and current status of the Broadcom/Google relationship as it relates to TPUs.

[chillee]

https://www.theinformation.com/articles/to-reduce-ai-costs-g...

Which takes it from

> Broadcom generates a 70% profit margin from its work on TPUs, said a person with direct knowledge of the internal analysis. SemiAnalysis, a chip research firm, earlier reported that figure.

https://semianalysis.com/2023/08/30/broadcoms-google-tpu-rev...

[mmaunder]

Thanks!