Google Expands TPU Line as Nvidia Faces Board Probe Over CEO Allegations

Technology giant Google is preparing to broaden its lineup of tensor processing units (TPUs), stepping up competition in the AI hardware market dominated by Nvidia. The new chips, slated for release next year, are designed to serve two distinct needs: one focused on confidential computing for customers handling sensitive data, and another built to process much larger datasets for applications such as coding and drug discovery.

Analysts at Bloomberg Intelligence forecast a dramatic expansion in the TPU market, projecting that sales—including supporting hardware and software—could surpass $135 billion by 2028, up from roughly $12 billion this year. They note that Google’s TPUs may be priced at about 30% less than comparable Nvidia GPUs, a gap that could exert downward pressure on Nvidia’s pricing and erode portions of its market share.

Market reaction and wider AI sell-off

The chip announcements coincide with a broader pullback in AI-related and cloud infrastructure stocks. Several companies, such as IREN, Cipher Digital and CoreWeave, have seen share prices plunge—some down by roughly 70% or more from their peaks—amplifying investor concern across the sector.

Leadership scrutiny at Nvidia

Separately, Nvidia experienced a sharp market value decline after news that its board has launched an investigation into reports concerning CEO Jensen Huang’s personal conduct. The company’s stock dropped significantly—erasing more than $250 billion in market capitalization at one point—before settling with a roughly 4.3% decline as the broader Nasdaq climbed.

Reportedly, US officials have raised concerns that a woman involved in an admitted affair with Huang may have been recruited by foreign intelligence. In response, Nvidia said independent board directors and outside counsel will oversee the inquiry. The board indicated it has no current evidence that national security or company secrets were compromised, and Huang has pledged full cooperation and received the board’s expressed confidence.

These developments—new TPU offerings from Google and governance scrutiny at Nvidia—could reshape competitive dynamics in AI hardware, influence pricing, and affect investor sentiment across related technology stocks.