Google unveils TPU 8t and TPU 8i chips for agentic AI

Google has introduced two new Tensor Processing Units, the TPU 8t for training and TPU 8i for inference, targeting what the company calls the agentic era of AI. These eighth-generation chips follow the Ironwood TPU from 2025 and promise faster, more efficient AI development. The hardware aims to cut training times for large models from months to weeks.

Google announced the TPU 8t and TPU 8i on Tuesday, positioning them as specialized accelerators for different stages of AI model lifecycles. The TPU 8t focuses on training frontier models, with updated server clusters called pods housing 9,600 chips and two petabytes of shared high-bandwidth memory. Google states these pods deliver 121 FP4 EFlops of compute, nearly three times higher than the previous Ironwood generation, and can scale linearly to a million chips in a single cluster. The company claims a 97 percent 'goodpute' rate, thanks to improved memory handling, automatic fault management, and real-time telemetry across chips, reducing wasted time and effort. Training times for massive AI models are expected to drop from months to weeks, Google says. The TPU 8i handles inference, the phase where trained models generate responses. These chips operate in larger pods of 1,152 units, providing 11.6 EFlops per pod. Each TPU 8i features triple the on-chip SRAM at 384 MB, enabling larger key-value caches for models with extended context windows. For the first time, the chips pair exclusively with Google's custom Axion ARM CPUs, using one CPU per two TPUs, which Google says boosts overall efficiency compared to the prior x86 setup servicing four TPUs. Efficiency gains extend to power and cooling. The new TPUs offer twice the performance per watt of Ironwood, while data center designs integrating networking and compute have increased computing power per electricity unit sixfold. Liquid cooling now uses actively controlled valves to match water flow to workloads. These chips will support Google's Gemini-based agents and third-party developers via frameworks like JAX, MaxText, PyTorch, SGLang, and vLLM. Nvidia's stock dipped 1.5 percent briefly after the news but recovered.

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Illustration of OpenAI's GPT-5.4 launch, showing enhanced AI models for knowledge work in a modern office setting amid competition.
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OpenAI releases GPT-5.4 models for knowledge work

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OpenAI has launched GPT-5.4, including variants Thinking and Pro, aimed at improving agentic tasks and knowledge work. The update features enhanced computer-use capabilities and reduced factual errors, amid competition from Anthropic following a US defense deal controversy. The models are available immediately to paid users and developers.

Experts argue that physical AI, involving robots and autonomous machines interacting with the real world, may provide a direct path to artificial general intelligence. Elon Musk's comments on Tesla's Optimus robots highlight this potential, amid growing investments in related technologies. The year 2026 is seen as a key inflection point for the field.

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Building on last week's earnings report announcing the shift from EVs to AI and robotics, Tesla has outlined specifics on its custom AI5 and AI6 chips, next-gen Optimus robot, and ambitious 'general solution' for self-driving and bipedal robotics. The $20 billion 2026 investment underscores this transformation amid ongoing EV challenges.

Nvidia has described AI as a five-layer industrial system. CEO Jensen detailed the AI layered stack and hinted at the company's next moves. The firm eyes expansion across technology layers, akin to Amazon beyond cloud services.

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Bytedance, the Chinese parent company of TikTok, is reportedly partnering with a Singapore-based firm to acquire NVIDIA's advanced B200 AI chips for use in Malaysia, bypassing US export restrictions. This arrangement aims to support AI research and development outside China. The project involves significant investment and adheres to export regulations.

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