Google Unveils Two New AI Chips To Challenge Nvidia
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Alphabet's (GOOGL) Google has introduced two new versions of its in-house tensor processing units, expanding its efforts to compete with Nvidia (NVDA) in the growing artificial intelligence chip market. Alphabet shares rose more than 3 percent in early trading following the announcement.
The new processors, 8tx and 8i Max, are redesigned versions of existing chips tailored to specific customer requirements. The 8tx targets government agencies and companies in regulated industries, combining Google's chip technology with AMD processors and hardware-level data encryption. It offers up to twice the speed of its predecessor, according to Google.
The 8i Max is designed for AI workloads requiring greater memory and computing power, including coding assistants, mathematical reasoning and drug discovery. Google has increasingly made its TPUs available through its cloud business to attract enterprise customers.
TPU sales contributed meaningfully to Alphabet's September-quarter results, while Google Cloud revenue more than doubled to $30.71 billion.
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