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Google is stepping up its competition with Nvidia by launching two specialized AI chips: the TPU 8tx, designed to protect sensitive data, and the TPU 8i Max, built to process massive amounts of information. Both are expected to be available next year. The move comes as Nvidia faces an investigation into whether its CEO, Jensen Huang, was targeted for intelligence-gathering. Nvidia shares fell as much as 8.8%, wiping about $400 billion off its market value during the session, while Alphabet shares rose as much as 4.1%. Sales of TPU chips, along with associated software and components, are estimated to exceed $135 billion by 2028, compared with about $12 billion expected this year. Their prices are also about 30% lower than Nvidia’s processors. But supply shortages and the risk of a slowdown in spending on AI infrastructure could limit Google’s ability to expand.
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