Nebius, Lambda and CoreWeave Say ‘No’ to TPUs Amid Google’s Push

Google’s recent announcement to sell its tensor processing units (TPUs) directly to customers marks a pivotal shift in its strategy, as the company aims to expand the reach of its hardware beyond Google Cloud. However, leading neocloud providers Nebius, Lambda, and CoreWeave have expressed skepticism about adopting TPUs, indicating a potential challenge for Google in establishing a broader market presence for its chips.

Despite Google’s efforts to open its TPU offerings, executives from the three companies have pointed out that demand overwhelmingly favors Nvidia graphics processing units (GPUs). Lambda’s CFO Chuck Fisher emphasized their commitment to Nvidia, while Nebius’s CRO Marc Boroditsky noted that 99% of their inquiries are for GPUs, with TPUs primarily sought by former Google employees. CoreWeave’s VP Nick Robbins echoed this sentiment, highlighting that major TPU users are also significant GPU buyers, reinforcing the notion that the market remains heavily skewed towards Nvidia. This reluctance among neocloud providers suggests that Google’s strategy may not yield the widespread adoption it hopes for, especially as it shifts focus to a select group of customers in niche sectors like financial services and frontier AI.

Looking ahead, Google is actively seeking financial partnerships to support its TPU leasing strategy, a move that differs significantly from Nvidia’s approach in the neocloud space. While there is potential for TPUs to gain traction in the future, the current landscape indicates that Nvidia will continue to dominate. As the market evolves, it will be crucial to monitor how Google’s TPU strategy develops and whether it can create a viable ecosystem that competes with Nvidia’s established foothold.