# Major AI data centers pass on Google's TPU chips as Nvidia grip holds firm

> Major data center operators including Nebius, Lambda, and CoreWeave are passing on Google's 8th-gen TPU chips, citing near-total customer demand for Nvidia GPUs. Google is now pursuing financing deals to lower adoption barriers.

- Type: AI news
- Page: https://completeaitraining.com/news/major-ai-data-centers-pass-on-googles-tpu-chips-as-nvidia/
- Published: 2026-05-06
- Updated: 2026-05-06
- Author: Jeroen Erne
- Jobs: Sales
- Reading time: 1 min

### Data Center Operators Reject Google's TPU Chip Despite Nvidia Dominance Challenge

Google's push to sell its 8th-generation Tensor Processing Unit (TPU) chips to external data centers has stalled. Leading AI infrastructure providers-Nebius, Lambda, and CoreWeave-said they have no immediate plans to adopt the chips, according to reporting from The Information.

Google developed TPUs for internal use with its Gemini AI models. After Gemini 3 outperformed competing systems, the company began offering TPUs to external customers. The market response has been lukewarm.

#### Nvidia's Lock-In Effect

Nvidia GPUs remain the default choice for data center operators building AI infrastructure. Marc Boroditsky, Nebius' chief revenue officer, said 99% of his company's customer demand is for Nvidia GPUs. Nick Robbins, CoreWeave's vice president of corporate development, put it plainly: "If 99% of the market wants GPUs, even if that demand drops to 90%, we'll still focus on GPUs."

Lambda's chief financial officer, Chuck Fisher, emphasized his company's commitment to Nvidia by saying, "We have green blood at Lambda"-a reference to Nvidia's corporate color.

Nvidia is both a key supplier and major investor in many of these data center operators, creating financial and operational ties that discourage switching.

#### Google's Financing Workaround

Google is attempting to overcome resistance through financing arrangements. In February, the company agreed with a major investment firm to establish a joint venture leasing TPUs to customers. Google is also discussing options with financial partners to create a special purpose vehicle that would purchase and lease TPUs directly.

These moves suggest Google recognizes that upfront chip costs and switching costs are barriers to adoption-problems that financing might address.

For sales professionals focused on AI infrastructure, this market dynamic illustrates how supplier relationships and existing customer commitments can outweigh technical performance. Understanding [AI for Sales](https://completeaitraining.com/tag/sales/) in the infrastructure space means recognizing that purchasing decisions often depend on ecosystem lock-in rather than product features alone. The competitive dynamics in [Generative AI and LLM](https://completeaitraining.com/tag/generative-ai-and-llm/) infrastructure remain shaped by vendor relationships established over years.

---

This is the Markdown form of https://completeaitraining.com/news/major-ai-data-centers-pass-on-googles-tpu-chips-as-nvidia/. The whole site is mapped at https://completeaitraining.com/llms.txt.