Google's AI chip business is estimated to be worth over US$700bn, making it the most valuable segment.

A stock analyst has stated that Google's (GOOGL.US) artificial intelligence chip business not only rivals Nvidia (NVDA.US), but may become the most valuable part of the internet search company. Google's internally designed chips, located in AI data centers, work alongside semiconductors produced by other companies such as Nvidia. Meanwhile, Google has an AI business called DeepMind, which is said to rival OpenAI, the maker of the popular ChatGPT application. According to analyst Gil Luria of financial services firm DA Davidson, the value of these AI businesses is more than $700bn, or $60 per share. Google's current market value is about $2.5tn, or $200 per share. The key part of Google's potential value comes from its chips, known as tensor processing units (TPUs), according to Luria's analysis. These chips can improve the performance of AI computers. Luria relies on a degree of the sum of the parts analysis, which aims to estimate the value of Google's various business units. The valuation method also seeks to undervalue Google's search business, which was found to be monopolistic by a court in August after the US Department of Justice sued. Possible remedies include splitting Google's search engine from its digital advertising market.