Google has announced an expansion of its partnership with Intel, continuing to procure SmartNICs for its public cloud services. This decision marks a strategic choice to rely on Intel’s technology rather than pursuing its own custom solutions, as seen with competitors like AWS, which has developed its Nitro NICs.
Understanding SmartNICs and IPUs
SmartNICs, or Infrastructure Processing Units (IPUs) as Intel refers to them, function as network cards equipped with computing capabilities. They are designed to offload tasks related to networking, security, and storage, thereby freeing up CPU resources for tenant workloads. Google previously collaborated with Intel to launch the Mount Evans IPU alongside its C3 instances in 2022.
Intel’s Growth and Google’s Role
In a recent press release, Intel highlighted the ongoing collaboration with Google to develop new IPUs, indicating a response to the increasing demand for high-speed networking, particularly for AI compute clusters. Intel’s CFO, David Zinsner, noted that the company’s custom ASIC business saw over 50 percent growth in 2025, reaching an annualized revenue run rate exceeding $1 billion.
Google’s Infrastructure Strategy
Despite the focus on IPUs, Intel reassured stakeholders that its Xeon processors will remain integral to Google Cloud, particularly for general-purpose and AI workloads. Google has also developed its own Arm-based CPU, codenamed Axion, which supports both internal and customer-facing applications. However, the presence of Intel and AMD processors is still significant, as many customers prefer x86 architecture for performance and compatibility.
Market Dynamics and Future Implications
While Google continues to innovate with its Axion CPU, the reliance on Intel’s Xeon processors for specific workloads indicates a balanced approach to cloud infrastructure. Xeon processors have been the preferred choice for Nvidia’s DGX reference designs, which underscores Intel’s ongoing relevance in the cloud computing landscape. The competitive dynamics between Intel and AMD remain crucial, as each company exerts pricing pressure on the other, benefiting cloud service providers like Google.
This article was produced by NeonPulse.today using human and AI-assisted editorial processes, based on publicly available information. Content may be edited for clarity and style.
