Google Expands Its AI Chip Lineup as Nvidia Faces a Leadership Probe

Google plans to launch two specialized tensor processing units next year. One is built for confidential computing, aimed at customers who handle sensitive information. The other is designed for applications that need much larger volumes of data, such as coding and drug discovery. The announcement lands just as Nvidia deals with an investigation into CEO Jensen Huang, who admitted an affair with a woman US officials reportedly suspect was recruited by Chinese intelligence. Independent directors and outside lawyers will oversee the inquiry, and the board says it has confidence in Huang, who has pledged to cooperate.

TPU Sales Forecast and Nvidia Stock Drop

Bloomberg Intelligence estimates TPU sales, including related hardware and software, could pass $135 billion by 2028, up from about $12 billion this year. Its analysts say the chips cost roughly 30% less than Nvidia’s GPUs, which could squeeze the market leader’s pricing and share. Nvidia lost more than $250 billion in market value on Monday and was trading near $175.69, down about 4.6%, even as the Nasdaq climbed more than 2% and Google gained 3.4%. The company says it has no reason to believe national security or company secrets were compromised.

AI Trade Weakness Hits Neocloud Stocks

IREN, CoreWeave and Cipher Digital

The wider AI trade is also under strain. Neocloud and infrastructure names such as IREN, Cipher Digital and CoreWeave are trading 70% or more below their all time highs.