Google is reportedly seeking to use its financial resources to build an AI ecosystem to challenge NVIDIA.

Google is exploring new ways to expand its artificial intelligence chip market, trying to build a broader AI ecosystem with its financial resources in order to better compete with market leader Nvidia. The company's chips are increasingly being used in AI tasks, including by startups like Anthropic, but Google also faces many challenges in its development efforts. According to sources familiar with the matter, these challenges include production capacity bottlenecks with manufacturing partners, and limited interest from cloud computing competitors - who happen to be the largest buyer group for Nvidia processors. Sources say that in order to expand the potential market, Google is increasing funding support for its data center partner network, which can provide computing services to a wider range of customers. Sources also revealed that Google is negotiating to invest about $100 million in the cloud computing startup Fluidstack, valuing the company at around $7.5 billion. Fluidstack is one of the growing number of so-called "new cloud" providers that offer computing services to AI companies and other clients. One of the largest players in this space, CoreWeave, primarily offers Nvidia's GPUs. Sources indicate that Google aims to help boost Fluidstack's growth potential and encourage more computing service providers to adopt its AI chips. Google's AI chip is called the Tensor Processor.