Alphabet Inc. shares rise 1.16% premarket after unveiling AI chip Ironwood and expanding Google partnership with Pexip.

Alphabet Inc. rose 1.16% in premarket trading, with the company unveiling its seventh generation of artificial intelligence chips, dubbed Ironwood, designed to improve the performance of AI applications. This new chip is the first designed for data processing used in queries to software such as OpenAI's ChatGPT, enabling fast computations for generating chatbot responses or other types of content. Additionally, Alphabet announced a 71% discount on its business apps package for U.S. federal agencies, aiming to capitalize on cost-cutting efforts and compete with Microsoft's dominance in the government software market.