Alphabet's Ironwood TPUs Challenge Nvidia's AI Chip Dominance with 4x Gains

Alphabet's 7th-gen Ironwood TPUs are emerging as a credible long-term threat to Nvidia's 81% AI chip market share, delivering 4x performance improvements and securing massive deals like Anthropic's up to 1 million units for 1 GW capacity worth tens of billions. Customers including Meta and Apple are adopting TPUs, with analysts at DA Davidson predicting Alphabet could capture 20% market share and build a $900B business if commercialized widely. Despite Nvidia's $1 trillion projected sales from Blackwell and Vera Rubin in 2026-27, rising TPU adoption signals shifting dynamics in the expanding AI infrastructure market.