Google could be collaborating with ARM to design and manufacture server processors, a move which can prove devastating for Intel in the server processor market.
Both Intel and ARM have declined to comment. The only point that Google’s spokeswoman said that they’re engaging to design the world’s best infrastructure which includes hardware designs at all levels and software design. Though Google declined to give a clarity, one would imagine that this is most likely going to be the case. Google did join a group started by IBM Corp who has expertise and licenses relevant in the data center market. The group also has Nvidia and Mellanox Technologies as members.
After the news broke out, Intel’s share pricing in New York went down to 3.1% during extended trading hours.
The information was leaked by an unidentified person to a reliable source that Google plans to do so to manage hardware and software in a better way. Looking at Google’s massive operation, its a no brainer that Google is the 5th largest buyers of server processors in the world, which gives a huge market dominance to Intel.