PaulAlcorn :
The article states that "there are long-running rumors that Google is developing its own CPU to break the Intel stranglehold." There are, in fact, long running rumors. There are hundreds (if not thousands) of articles on the subject that can be found dating back to 2013. If Google were to build its own chips it would likely not compete with Intel in the open market, but instead use them for its own purposes.
Right. I've definitely seen stuff, to that effect. But how much of that is just wild speculation, based on their hiring of chip designers vs. actual leaks about what they were doing?
To me, it seems likely that they're building specialized chips that either don't exist on the market, or are very closely matched to Google's internal needs & software. Exactly like this TPU.
I think the likelihood of them building a general-purpose CPU, that would be competitive with something like a Xeon, is near zero. If they could succeed, it wouldn't be by a very big margin, and the cost would be so high that it's difficult to see them amortizing it over the useful lifespan of the chip (which would only be another generation or so of x86 CPUs).
Intel has tuned their x86 chips to the point that you can't possibly beat them by doing only a few things better. You have to do everything well, and a few things extremely well. And this could take generations to accomplish, by which point the entire fabrication process of CPUs might be in upheaval, as lithography hits a wall. So, the only way it makes sense to DIY is if your workload is drastically different than the target of a typical server CPU or GPU.