Alphabet introduces TPU 8t and 8i with lower AI chip costs
Alphabet launched its TPU 8t and 8i chips in October, claiming better performance-per-dollar than the previous TPU v7 (Ironwood). The company highlights lower token costs, positioning its offering as among the most cost-effective for AI tasks.
Key points
- TPU 8t and 8i chips offer improved performance-per-dollar over TPU v7 (Ironwood), per Alphabet
- Google Cloud’s Q2 operating margin hit 35.6%, up ~15 points year-over-year
- Alphabet’s first TPU revenue came in Q2, but scale is described as small
Google Cloud reported a 35.6% operating margin in Q2, up roughly 15 percentage points year-over-year. Operating income surged to $8.8 billion, more than tripling as AI services expanded. Alphabet began selling TPUs to third-party customers in April, recording its first TPU-related revenue in Q2, though the scale remains small.
The story so far
4 episodes →- Alphabet introduces TPU 8t and 8i with lower AI chip coststhis story
Alphabet's $250 Billion AI Chip Opportunity Takes Aim At Nvidia
seekingalpha.com · 29 October 2026
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