Google adopts new Arm chips to boost streaming services

Zhitong
2024.10.31 00:52
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Google announced that its cloud services are adopting new Arm chips to support streaming services, which are now available to all cloud users. The new Axion chips outperform traditional competitors AMD and Intel in performance. Google Cloud's revenue in the third quarter of 2024 increased by 35% year-on-year, reaching $11.4 billion, with an operating profit margin rising to 17%. This move sends a positive signal to cloud computing giants like Microsoft and Amazon

According to Zhitong Finance APP, Google (GOOGL.US), a subsidiary of Alphabet, announced today that Google Cloud is using a new chip designed with Arm Holdings (ARM.US) technology to support its streaming services. It is reported that Google has now provided this chip to all its cloud users, and the new Axion chip is being used for streaming by Spotify Technology (SPOT.US) and Paramount Global (PARA.US). Its competitors include more traditional computer hardware manufacturers like AMD (AMD.US) and Intel (INTC.US).

Spotify's Chief Engineer Dave Zolotusky stated, "So far, the workload performance we've tested on Axion is about 250% better than on Google Cloud."

Amazon Web Services has also developed Arm-based chips for its cloud users, and Microsoft (MSFT.US) offers similar services for its Azure customers.

Google Cloud is continuously evolving. According to the company's financial report for the third quarter of 2024 disclosed yesterday, Google Cloud's revenue grew by 35% year-on-year, reaching $11.4 billion.

Google's Chief Financial Officer Anat Ashkenazi stated, "Google Cloud's operating income increased to $1.9 billion, with an operating profit margin rising to 17%." "The increase in operating profit margin is attributed to strong revenue performance from cloud AI products, core GCP, and Workspace, as well as ongoing efficiency improvement initiatives."

This is a positive signal for cloud computing giants like Microsoft and Amazon, both of which will announce their latest financial reports today and tomorrow

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