CNBC's Kristina Partsinevelos talks Intel and Google announcing a multiyear AI infrastructure partnership. In an exclusive interview with CNBC, Philipp Herzig, the CTO at SAP remains positive that AI will positively transform software applications.

The two tech giants are looking to co-develop custom chips, at a time where demand for CPUs is high due to a growing global shortage.

Key Takeaways Intel announced an expanded partnership with Google Thursday, adding to a string of recent deals.Intel has seen its stock stock surge on optimism about deals with Nvidia, Tesla, and the U.

Source: Intel Intel and Google announced a multi-year collaboration on the 10th to advance next-generation AI and cloud infrastructure. The companies stated that this partnership will strengthen the critical roles of CPUs and custom Infrastructure Processing Units (IPUs) in deploying large-scale,

Google LLC will adopt multiple future iterations of Intel Corp.’s Xeon processor series as part of a collaboration announced today. Shares of the chipmaker closed 4.7% higher on the news. Google will deploy the chips in its cloud platform.

Although Google now has its own Arm-based Axion CPUs, Intel's Xeon processors with custom IPUs will continue to be used for AI and other demanding workloads in Google's data centers for years.

AI is reshaping how infrastructure is built and scaled,” Intel CEO Lip-Bu Tan said in a statement. “Scaling AI requires more than accelerators. It requires balanced systems.”