Alphabet Stock Rises Over 3% as Google Unveils Two TPU Systems

Alphabet Inc. (NASDAQ: GOOGL) shares rose more than 3% to $294.50 in morning trading on Monday as Google unveiled two specialized AI computing systems, TPU 8tx and TPU 8i Max, designed to improve data security and handle more demanding AI workloads.

The additions expand Google’s AI hardware portfolio as it competes with Nvidia in the AI accelerator market. Both systems use existing eighth-generation Tensor Processing Unit (TPU) chips in new hardware configurations rather than entirely new processor designs.

Google Unveils New TPU Systems and Software Tools

TPU 8tx combines Google’s existing TPU 8t technology with fifth-generation AMD EPYC processors to support confidential computing, which protects sensitive information and AI models while they are being processed.

The added security targets government agencies and regulated businesses that work with proprietary models or confidential data. Google said TPU 8tx can reduce processing latency by up to 50% compared with TPU 8t while adding hardware-level security protections with minimal performance overhead.

While TPU 8tx focuses on security, TPU 8i Max supports workloads that need greater computing power and memory. The system combines two TPU 8i chips in a single package. According to Google, the design doubles computing power, on-chip SRAM, and high-bandwidth memory bandwidth compared with TPU 8i without requiring a larger rack footprint.

Potential applications include processing extensive software codebases, lengthy video content, and large amounts of information used by autonomous AI agents.

Together, the additions expand Google’s eighth-generation TPU portfolio to four systems, alongside TPU 8t and TPU 8i, which were introduced in April. Google Chief Technologist Amin Vahdat told Bloomberg that the two new configurations are expected to become available in 2027.

Alongside the hardware announcements, Google introduced software updates intended to make TPU systems easier to manage and optimize. Google said it is open-sourcing TPU Sync, software designed to manage AI model data and memory across TPU clusters. It also previewed its open-source TPU agent suite, which helps developers set up and optimize TPU systems.

Cloud Pathways and dynamic TPU slicing are now generally available on Google Kubernetes Engine. Cloud Pathways helps customers manage large TPU computing clusters, while dynamic slicing helps them reorganize computing resources as workloads change. Google said dynamic TPU slicing can speed up job startup by up to five times without requiring users to recreate computing groups.

TPU System Sales Contributed to Google Cloud’s Third-Quarter Revenue Growth

Google said its TPU business serves nearly 100 customers, including AI developers, financial firms, retailers and universities.

Google also supplies TPU systems for deployment in customers’ own data centers, rather than limiting access to its cloud infrastructure. Alphabet said in its third-quarter SEC filing that it had signed a limited number of agreements to supply TPU systems for specialized, high-scale workloads requiring on-premises infrastructure.

Alphabet reported Google Cloud revenue of $30.71 billion for the third quarter of 2026, up 103% from a year earlier. The company identified TPU system sales as a meaningful contributor to the segment’s revenue growth.

The role of TPU hardware in Google’s cloud business is also reflected in Alphabet’s quarterly SEC filing. The company said TPU systems account for most of Google Cloud’s product sales, a category separate from its cloud-service fees and subscriptions. However, Alphabet did not disclose how much revenue TPU systems generated individually.

Alphabet Chief Financial Officer Anat Ashkenazi said during the company’s third-quarter earnings call on October 28 that TPU system sales were expected to continue scaling in the fourth quarter, followed by a meaningful revenue ramp in 2027.

Alphabet Stock and Tokenized Trading

Alphabet shares closed Friday at $284.78, up about 1.8% over the past five trading sessions. At the $294.50 morning trading price, the stock remained about 9.4% below its October 28 closing price of $324.89, recorded before the company released its third-quarter financial results.

Separately, Alphabet Tokenized bStocks (GOOGLB) traded at $293.35, up 3% over the past 24 hours, according to CoinMarketCap. Unlike Nasdaq-listed Alphabet shares, the tokenized instrument trades separately, and its 24-hour price change covers a different measurement period.