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Google unveils custom AI chips (TPU 8) to cut dependence on Nvidia and lower compute costs

Google announced two new Tensor Processing Units (TPU 8t and TPU 8i)—custom-designed chips made specifically for AI work—shipping later in 2025. Unlike most AI labs that buy expensive Nvidia chips, Google builds its own silicon in-house, avoiding what the industry calls 'the Nvidia tax' (the premium price Nvidia charges because so few suppliers exist).

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