Google could become a chipmaker soon. According to sources contacted by Bloomberg, the Mountain View Company would want to design their own processor based on the ARM architecture — for use in servers only – which will be installed in data centers around the world. The plans aren’t confirmed and could change over the next few months. However, Intel would do well to worry as the market entry of Big G could have negative consequences for its business.
Google offers a number of software and web services, from YouTube to Google Drive, for which it needs solid hardware infrastructure that bears the workload, without interruptions or slowdowns.
Currently, Intel processors are being used at Big G’s data centers, but in the future the Santa Clara chipmaker could lose a good chunk of profit if Google engineers will design a CPU based on the ARM architecture. A Google spokesman said that Mountain View Company is currently engaged in the creation of a new infrastructure, however, without reference to a processor.
Currently, Intel is dominating the servers’ arena single handedly, having a market share of 95%. However, Google seems determined to reduce its dependence on Intel by developing a custom chip optimized for their software, thus following the same path taken by Apple and Samsung in the mobile market. Google is one of the most important partners, being the fifth customer to purchase the number of processors, corresponding to 4.3% of the profits.