Economy

Google to Release New 'Ironwood' AI Chip for Cloud Customers

Illustration for: Google to Release New 'Ironwood' AI Chip for Cloud Customers
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Nov 7, 2025

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Google announced on Thursday that it will make its seventh-generation custom artificial intelligence chip, the Ironwood Tensor Processing Unit (TPU), widely available in the coming weeks. The company stated that the new chip is more than four times faster than its predecessor and is designed for intensive AI workloads, such as training large models and operating real-time AI agents.

The release is part of the company's effort to compete in the AI infrastructure market against rivals like Amazon, Microsoft, and the prevalent chip supplier Nvidia. AI startup Anthropic intends to use up to one million of the new Ironwood chips. Anthropic’s Chief Product Officer, Mike Krieger, stated that a multi-chip strategy involving Google, Amazon, and Nvidia was necessary to meet demand.

The move comes as Google experiences growth in its cloud division. The company reported its third-quarter cloud revenue was $15.15 billion, a 34% increase from the prior year. In response to demand, Google increased its 2025 capital expenditure forecast to a high of $93 billion. CEO Sundar Pichai said that substantial demand for the company's AI infrastructure products is a key driver of growth.

Google has been developing TPUs for over a decade and offers them as a cloud service rather than selling the hardware directly. According to an analyst from Bernstein, Google is the only major cloud provider to have deployed its own custom AI chips in such large volumes. The company also remains a major buyer of Nvidia's GPUs. On Tuesday, Google also announced Project Suncatcher, an initiative to explore using solar-powered satellites equipped with TPUs.

Same Facts. Different Perspectives.

Two AI models. Two viewpoints. One factual foundation.

Perspective by Claude

• The new chip represents a significant technological advancement. The seventh-generation Ironwood Tensor Processing Unit (TPU) is stated to be more than four times faster than its predecessor. It is specifically engineered for demanding AI workloads, such as training large models and operating real-time AI agents.

• The AI infrastructure initiative is driving substantial business growth. Google’s cloud division reported a 34% year-over-year revenue increase to $15.15 billion, with the company's CEO citing strong demand for its AI products as a key driver. In response, Google has raised its 2025 capital expenditure forecast to a high of $93 billion to meet this demand.

• Google has established a unique position as a custom hardware provider. According to an analyst, Google is the only major cloud provider deploying its own custom AI chips at such a large scale, a result of over a decade of development. The company continues to innovate with projects like Suncatcher, which will explore using TPUs on solar-powered satellites.

How it may affect me

As a U.S. reader:

• The development of faster AI chips could lead to improved performance and new capabilities in consumer-facing applications and services powered by artificial intelligence.

• Increased investment and competition in the AI hardware market among major tech firms may impact the technology sector and related financial markets.

• Competition among Google, Nvidia, and others for AI customers may influence the long-term cost and variety of AI-driven products available to the public.

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