By Colin Kellaher

Shares of Broadcom moved lower in premarket trading Thursday following a published report that Alphabet's Google unit is looking to drop the company as a supplier of artificial-intelligence chips as early as 2027.

Business news website The Information, citing a person with direct knowledge of the situation, reported that in this scenario Google would fully design the chips, known as tensor processing units, in-house in a move that could help it save billions of dollars in annual costs.

Broadcom shares, which closed Wednesday at $830.57, were recently down 7% in premarket trading at $772.

The Information also reported that Marvell Technology could replace Broadcom as one of Google's AI chip development partners, sending shares of Marvell up 5.1% to $55.65 in premarket trading.

Write to Colin Kellaher at colin.kellaher@wsj.com

(END) Dow Jones Newswires

September 21, 2023 07:38 ET (11:38 GMT)

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