This article first appeared on GuruFocus.
Alphabet (NASDAQ:GOOG) is leaning even further into AI, rolling out two new TPU chips that show just how fast the demand for computing power is growing.
The approach is pretty clear. Google is splitting the workload. The TPU 8t is built for training large AI models, while the TPU 8i is focused on running them efficiently in real time. Both come with a noticeable jump in capability. The 8t can scale up to 9,600 chips in a single system, while the 8i significantly boosts memory bandwidth to handle fast, low latency tasks. Shares moved about 1.5% higher in premarket trading, suggesting investors are paying attention.
But this is not just about better chips. It is part of a bigger shift across the industry. Google, along with companies like Amazon (NASDAQ:AMZN) and Microsoft (NASDAQ:MSFT), is trying to rely less on external suppliers by building more of its own hardware stack. It is also investing in the plumbing around it, including a new network system designed to connect multiple data centers and handle increasingly complex AI workloads.
