Alphabet stock gains 1.7% after unveiling new AI chips, partnerships

Investing.com -- Alphabet (NASDAQ: GOOGL) shares rose 1.7% Wednesday following the company’s announcement of new artificial intelligence infrastructure and partnerships at its Cloud Next ’26 conference.

The stock climbed after Google Cloud introduced its eighth-generation Tensor Processing Units, featuring two specialized chips designed for AI workloads. TPU 8t is optimized for training and scales up to 9,600 chips with two petabytes of shared memory in a single superpod, delivering three times the processing power of the previous generation. TPU 8i is designed for inference workloads, connecting 1,152 TPUs in a single pod with three times more on-chip SRAM to support AI agents requiring low latency and high throughput.

Google Cloud also announced a $750 million fund to support its 120,000-member partner ecosystem in developing and deploying agentic AI solutions. The fund will provide resources for AI value assessments, prototyping, agent building, and upskilling initiatives for consulting firms, systems integrators, and software partners.

The company revealed that its models now process more than 16 billion tokens per minute via direct API use by customers, up from 10 billion last quarter. Nearly 75% of Google Cloud customers are using the company’s AI products, with 330 customers processing over a trillion tokens each in the past 12 months.

Google Cloud signed an expanded agreement with Thinking Machines Lab, which will utilize A4X Max virtual machines with NVIDIA GB300 GPUs. In early testing, Thinking Machines reported training and serving speeds increased two times with A4X Max VMs compared to prior generation GPUs.

The company also introduced the Gemini Enterprise Agent Platform, designed to help organizations build, scale, and govern AI agents. Google Cloud reported 40% growth in paid monthly active users quarter-over-quarter for Gemini Enterprise in the first quarter.

Internally, Google reported that 75% of all new code at the company is now AI-generated and approved by engineers, up from 50% last fall.

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