Summary
- Google intends to roll out a pair of custom AI processors next year, focusing on confidential computing and workloads handling massive data sets.
- TPUs are roughly 30% cheaper than Nvidia’s graphics cards, which could create downward pressure on Nvidia’s pricing strategy and market dominance.
- Nvidia stock dropped 5% following news of an internal probe concerning CEO Jensen Huang, introducing leadership uncertainty.
Google GOOG $288.60 is broadening its AI chip portfolio, compounding competitive pressures on Nvidia NVDA $177.03 alongside an ongoing inquiry into CEO Jensen Huang’s personal life.
This dual challenge arrives as artificial intelligence investments cool down, with emerging cloud and infrastructure equities—such as IREN IREN $21.79, Cipher Digital CIFR $6.8350, and CoreWeave (CRWV)—plummeting by 70% or more from their peak valuations.
Google plans to release two distinct tensor processing units (TPUs) next year. One is designed for confidential computing aimed at clients managing sensitive data, while the other caters to data-intensive tasks like software development and pharmaceutical research.
Bloomberg Intelligence projects that TPU revenues, encompassing associated hardware and software packages, could surpass $135 billion by 2028, rising sharply from a projected $12 billion this year. Their analysts point out that these processors cost roughly 30% less than Nvidia’s GPUs, potentially squeezing the dominant firm’s pricing power and market share.
Concurrently, Nvidia shed over $250 billion in market capitalization on Monday after company directors announced an investigation into reports that Huang had become a target of foreign intelligence agencies. The stock has recovered slightly from its initial troughs, down 4.3% while the broader Nasdaq index climbs over 2%, which includes a 3.4% advance for Google.
Huang acknowledged a romantic relationship with a woman whom U.S. authorities allegedly suspect of ties to Chinese intelligence operations. Independent board members and external legal counsel will supervise the investigation.
Nvidia stated it has found no evidence suggesting that national security or proprietary corporate information was compromised. The board reaffirmed its trust in Huang, who has committed to fully cooperating with the probe.
Originally published at https://www.coindesk.com/markets/2026/11/09/google-s-ai-chip-push-adds-more-pressure-on-nvidia.
