Alphabet (GOOGL) Launches Two New TPUs Targeting $135 Billion by 2028

Google Puts Two New TPUs Against Nvidia

Alphabet (GOOGL) launched two new tensor processing units (TPUs) on Monday, deepening its challenge to Nvidia (NVDA) in the market for AI accelerators. Christened 8tx and 8i Max, the processors rework designs Google has run for years inside Search, YouTube and Gemini, and the company set out the launch in an official post. The 8tx is built for confidential computing, aimed at customers that cannot risk exposing data while it is processed. Google identified government departments, banks and firms under strict data-protection rules as that audience, and worked with chip designers at Advanced Micro Devices (AMD) to put encryption into the hardware itself. Guarding information during processing normally consumes computing resources, but the company claims double the throughput of the prior generation while keeping performance losses close to zero. The 8i Max takes a different path, combining two chips in one package to add memory and processing power, targeting code-writing assistants, mathematical reasoning and drug-discovery workloads. Google long kept its TPU technology in-house while Nvidia sells GPUs across the whole industry, but that model is changing. Alphabet rents TPU computing through Google Cloud, so customers can run AI workloads without buying Nvidia hardware, and the company disclosed that TPU sales contributed meaningfully to September-quarter results, in a quarter where Google Cloud revenue rose more than 100% to $30.71 billion. Bloomberg Intelligence projects that the TPU business, counting related hardware and software, could pass $135 billion in sales by 2028, from roughly $12 billion this year, and puts the chips' cost about 30% below Nvidia's GPUs, a gap that adds pressure on the market leader's pricing and share. Alphabet stock gained more than 2% in premarket deals on Monday despite a 9% drop this year through the prior close.

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Nvidia Board Probes CEO Jensen Huang

Nvidia's board announced an investigation into reports that chief executive Jensen Huang had been targeted by foreign intelligence, a disclosure that erased more than $250 billion of the company's market value on Monday. Huang, who personally owns about 3.5% of Nvidia, admitted the affair in a statement circulated among employees, writing: “There is no excuse for what I did. I am deeply sorry. I am committed to protecting Nvidia and supporting America's national security. I am proud and grateful to be an American.” US officials reportedly suspect the woman involved was recruited by Chinese intelligence. The review will be run by independent directors working with outside lawyers. The company said nothing suggests national security or company secrets were exposed, and the board voiced confidence in Huang, who promised full cooperation. The stock fell more than 5% in Monday trading before easing to a 4.3% loss as the broader Nasdaq rallied more than 2%, with Alphabet gaining 3.4%. The pressure reaches beyond Nvidia: neocloud and infrastructure names including IREN, Cipher Digital and CoreWeave trade 70% or more below their all-time highs as the AI trade falters. Political reactions followed. President Trump called Huang a 'good guy' while adding 'you never know what's going on.' Secretary of State Marco Rubio said he 'just can't comment.' China's Foreign Ministry dismissed the espionage accusations as 'groundless speculation' and 'an attempt to smear China.' Nvidia remains the world's second most valuable publicly traded company, behind Apple and ahead of Microsoft, Alphabet and Amazon. Huang told Bloomberg he hopes to stay for another 20 years and believes a successor may already work at the firm, where his son Spencer, daughter Madison and son-in-law Nico Caprez also hold roles. Asked whether Madison could take the top job, he pushed back, saying his children 'would have to go earn it.' There is no indication he plans to resign.

NVDA Below $178 Support After Selloff

The disclosure leaves Nvidia's chart at a decisive spot. COINOTAG data shows Nvidia trading at $177.24, down 5.37% over the past 24 hours, just below its strongest support at $178.25, a level scored 79/100 on COINOTAG's composite; the daily RSI of 26.9 and a bearish MACD reading confirm the downtrend. Alphabet sits at $293.09, up 2.62%, testing the $296.68 resistance that carries the highest ranking at 80/100, so Monday's chip news has so far produced a test of the top of the range rather than a breakout.