Google had long been considered a company that missed the AI revolution theoretically launched in 2022 (the launch of ChatGPT 3.5).
Google’s Strategic Strike – TPU 8t and TPU 8i Enter the Game
After four years, it turns out that the Mountain View giant was simply operating with strategic precision.
The capabilities of Gemini and its integration with the entire Google ecosystem not only caught up with OpenAI but also set a new standard.
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The situation is no different in the component field, which is crucial for generative artificial intelligence. During the last Google conference, the board confirmed that its eighth generation Tensor Processing Units (TPU) will be split into two specialized models.
TPU 8t is a true performance monster, designed for training AI models. In contrast, TPU 8i was created with inference in mind, the process that follows entering a prompt into the chat window by the user.
Google’s new units offer up to three times faster AI model training (compared to previous Google models). Moreover, the eighth generation AI chips deliver an 80% better performance per 1 USD.
Google also revealed that it is possible to combine over 1 million TPUs into one gigantic cluster. This means greater computing power with drastically lower energy consumption and lower costs for customers. For investors, this is a clear signal that Google is no longer just a cloud provider, but wants to be the architect of the most efficient AI ecosystem.
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Nvidia Shares Down, Alphabet Rises
Looking at the numbers, it’s clear that Nvidia remains a titan of the industry.
Analyst Patrick Moorhead recently reminded on X that in 2026 he had already predicted trouble for Nvidia after the launch of the first TPU.
Since then, Nvidia shares have shot into the sky, clearly proving that betting against the company of Jensen Huang can be costly.
It’s also worth noting that the eighth-generation TPU chips are not a frontal attack on Nvidia, as they are meant to complement Nvidia’s infrastructure, not replace it.
For investors, this is a clear signal that Google is building its own fortress to both reduce costs and attract corporations seeking cheaper and more stable computing power. At this moment, Nvidia still offers technology that cannot be replaced overnight, so the “green” margins will remain record‑setting.
However, if we look long‑term, every billion USD spent on TPU, is a billion USD, that does not go into Nvidia’s coffers.
If companies start mass‑moving their applications to dedicated Google chips, the dependence on Nvidia, which is currently huge, will slowly decline.
The market’s reaction to Google’s new announcements was immediate.
Nvidia shares briefly fell, but in the next session the “green” shares rose over 1,25% to the peak of 202,34 USD.
Chart. Nvidia share price
Source: TradingView
Alphabet saw an even larger rally, as the parent company of Google, with the price jumping 2,12% to the level of 339,32 USD.
Chart. Alphabet share price
Source: TradingView
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Sources: Bloomberg, CNBC.
