Google launches TPU 8tx and 8i Max, doubling down on challenge to Nvidia

Alphabet unveiled two new tensor processing unit variants, the TPU 8tx for secure, confidential computing in government and regulated industries—running alongside AMD chips as part of a partnership between the two companies—and the TPU 8i Max, which packages two TPU chips together to boost compute and memory capacity for long-context AI applications. Both products are expected to launch next year, expanding Google's TPU lineup to four chips optimized for different workloads, according to chip chief Amin Vahdat, who said the company typically releases one AI processor every two years but has now introduced two in a single year. Industry research projects Google's TPU-related chip, software and hardware sales will exceed $135 billion by 2028, up from roughly $12 billion expected this year. The announcement underscores Google's escalating challenge to Nvidia's dominance in AI accelerators, and the market reaction was immediate: Alphabet rose as much as 2% in premarket trading while Nvidia fell nearly 6%. Investors will watch for launch timing and customer adoption of the new chips, as well as whether the AMD collaboration broadens Google's supplier base.