Alphabet (GOOGL) (GOOG) is making its most advanced AI chip, called Ironwood, available to more users. The chip was first introduced in April for testing. Google now says it will be open for wider use in the coming weeks. Ironwood is the seventh version of the company’s in-house Tensor Processing Unit, or TPU. It is built to handle large AI models and real-time chat tools.
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The company says Ironwood runs more than four times faster than its earlier chip. Each pod can connect up to 9,216 chips, which helps manage heavy data tasks with fewer delays. Google says this setup lets users “run and scale the largest, most data-intensive models in existence.”
Meanwhile, GOOGL shares climbed 2.44% on Wednesday to close at $284.31.
Building Strength in the Cloud
The move comes as Google works to attract more AI companies to its cloud business. Most large AI systems still use graphics chips from Nvidia (NVDA). Google’s custom TPUs give it a way to compete on both price and performance. The company said AI startup Anthropic will use as many as one million Ironwood chips to run its Claude model.
Alongside the new chip, Google is also adding tools to make its cloud faster and cheaper. It wants to close the gap with Amazon (AMZN) and Microsoft (MSFT), which lead in cloud services.
In its latest earnings report, Google said its cloud revenue rose 34% from a year earlier to $15.15 billion in the third quarter. Microsoft Azure grew 40% in the same period, while Amazon Web Services (AWS) climbed 20%. Google added that it has signed more billion-dollar cloud deals this year than in the last two years combined.
To keep up with demand, Google raised its capital spending forecast to $93 billion, up from $85 billion. Chief Executive Officer Sundar Pichai said, “We are seeing substantial demand for our AI infrastructure products, including TPU-based and GPU-based solutions.” He added that this demand has been a major driver of growth.
A Race to Build the Future of AI
The new chip is part of a larger race to build the computing power behind AI. Google, Microsoft, Amazon, and Meta Platforms (META) are all investing heavily in this space. Each aims to become the main platform for AI model training and deployment.
For Google, Ironwood marks a step toward greater control over its technology. It also shows how the company plans to use its hardware to support its cloud business. As AI use expands, demand for faster and more efficient chips is likely to keep rising.
Is Google Stock a Buy?
Google still holds the backing of the Street’s analysts, with a Strong Buy consensus rating. The average GOOGL stock price target stands at $309.76, implying an 8.95% upside from the current price.
