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UPDATE 1-Google discussed dropping Broadcom as AI chips supplier - The Information

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(Adds details in paragraph 2-3)

Sept 21 (Reuters) - Alphabet-owned Google's executives have discussed dropping Broadcom as a supplier of artificial intelligence (AI) chips as early as 2027, The Information reported on Thursday.

If that happens, Google will design the chips - known as tensor processing units - in-house, the report said, adding that executives set a goal earlier this year to ditch Broadcom following a standoff between the companies over the price Broadcom was charging for the chips.

Google also plans to launch an improved networking chip, internally code-named Granite Redux, with chipmaker Marvell Technology by next year, The Information said.

Google, Broadcom and Marvell didn't immediately respond to a Reuters request for comment.

Broadcom shares fell 3.7% in premarket trading. (Reporting by Kanjyik Ghosh in Bengaluru; Editing by Savio D'Souza and Nivedita Bhattacharjee)

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