Google (GOOG) needs a lot of server capacity to run all those zillions of search results and billions of YouTube streams. It is safe to say that Google has as many servers as any company in the world. That probably makes it a good customer for chip companies, especially Intel (INTC) and/or AMD (AMD).
Google has decided to buy its own hardware firm, and, from the looks of it, the company may start to cook up its own processors. Today the big search company bought PickStream which is "focused on programming chips called graphics processing units", according to The Wall Street Journal.
Graphics processors can help improve the level of computing functions in PCs and servers, so, with Google’s expanding need for server units, designing its own guts for them may save money and allow the company’s server farms to work more efficiently.
Douglas A. McIntyre