There might be some tension during Google's next boardroom meeting.
In a report released yesterday, Morgan Stanley analyst Mark Edelstone claimed that the Internet giant is favoring Advanced Micro Devices' Opteron processors for most near-term server purchases. Previously, Google (nasdaq: GOOG - news - people ) relied on Intel (nasdaq: INTC - news - people ) chips to power its many servers.
"We believe that Google is one of [AMD's] largest customers for servers," Edelstone wrote in the report.
Google spokeswoman Sonya Borälv would not comment on that assertion, saying only that the company "continually evaluates the price and performance of its computing infrastructure to guide purchasing decisions."
If it is true, however, the news will surely come as a blow to Intel chief executive Paul Otellini, who sits on Google's board. AMD (nyse: AMD - news - people ) is the No. 2 manufacturer of computer processors behind Intel. Its processors are cheaper than Intel's and have recently been winning over many corporate customers.
Last quarter, AMD grabbed more than 20% of the market for the first time in more than four years. In his report, Edelstone speculated that AMD's new business with Google might help it beat analysts' estimates this quarter.
Will any of the 300-plus attendees of Google's analyst meeting -- which began today at 10:00 am PST (1:00 pm EST) and concludes approximately four hours after that -- be able to sort the matter out?