Alphabet Inc.'s GOOGL 0.78%GOOG 0.87% Google-branded streaming-videogame service will be powered by Advanced Micro Devices Inc. AMD 9.20% chips, Google executives confirmed Tuesday. AMD shares were more than 7% higher in Tuesday trading, after Morgan Stanley analysts predicted the announcement ahead of trading.
AMD Chief Executive Lisa Su revealed earlier this year at CES that AMD and Google had worked together on the beta test of the service, known as Project Stream. At an event Tuesday in connection with the Game Developers Conference in San Francisco, Google executives said that the partnership will lead to thousands of exclusive custom AMD gaming chips in Alphabet data centers to run the service, which Google calls Stadia. Alphabet shares were trading about 0.6% higher Tuesday.