Open Source Securities: Google releases the eighth generation TPU optical module, OCS and liquid cooling industry chain core beneficiaries

According to Zhitong Finance APP, Kaiyuan Securities released a research report stating that Google (GOOGL.US) Cloud Next '26 launched the eighth generation TPU, including TPU 8t for training and TPU 8i for inference. The 8t utilizes OCS technology to achieve automatic hardware topology reconstruction, while the 8i achieves interconnection between Boardfly groups through OCS. The firm believes that the new technology route may open up market space for optical modules, OCS, and liquid cooling, with the 8t adopting a fully liquid-cooled architecture, potentially enhancing the ratio of Scale out optical modules; the 8i may increase the demand for optical modules and OCS.

Key points from Kaiyuan Securities are as follows:

Google Cloud Next '26 heavily releases the eighth generation TPU, benefiting core optical modules, OCS, and liquid cooling

Google Cloud Next '26 opened on April 22 in Las Vegas, Nevada, USA, where two eighth generation TPUs were launched: TPU 8t for AI model training and TPU 8i for inference tasks. The 8t is equipped with OCS technology that automatically reconstructs hardware topology around faults without human intervention, while the 8i Scale up uses Boardfly topology to achieve interconnection between groups through OCS. The firm believes that this conference may become the starting point for Google's new technology route, potentially opening up space for optical modules, OCS, and liquid cooling.

TPU 8t targets large-scale training, Scale out optical module ratio may increase, adopting fully liquid-cooled architecture

In terms of Scale up, the 8t continues to use the 3DTorus topology, expanding a single SuperPod super node from 9,216 chips to 9,600 chips, with shared high-bandwidth memory reaching 2PB, and inter-chip interconnection (ICI) bandwidth doubling compared to the previous generation. For Scale out, v8 introduces a new Virgo network architecture, employing high-radix switches and a flattened two-layer non-blocking topology, with single-chip lateral expansion bandwidth jumping from 100Gbps to 400Gbps, and overall data center network (DCN) bandwidth increasing fourfold compared to the previous generation. A single Virgo network can connect 134,000 TPUs, and can be scaled to a million TPU cluster through JAX and Pathways frameworks. In terms of cooling, according to Google Cloud, the 8t adopts fourth-generation liquid cooling, with an upgraded full immersion + CDU centralized liquid cooling architecture.

TPU 8i targets high-concurrency inference, Scale up optical module ratio may increase, OCS demand may rise

In terms of Scale up, the 8i adopts a new Boardfly interconnection topology (4 TPUs form 1 BB unit, 8 BBs are connected by copper wires to form a Group, and 36 Groups are interconnected through OCS to form a cluster), compressing the maximum jump count between any two chips from 16 hops to 7 hops under a configuration of 1,024 chips, with a single SuperPod super node increasing from 256 chips to 1,152 chips, FP8 computing power increasing by 8.67 times, and HBM capacity increasing by 5.74 times. For Scale out, the 8i extends based on the Boardfly topology, paired with OCS optical path switching for dynamic link reconstruction In terms of cooling, both 8i and 8t use the fourth generation liquid cooling.

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Recommended targets for [optical modules & optical chips]: Zhongji Xuchuang, Xinyi Sheng, Yuanjie Technology; benefiting targets: Changxin Bochuang, etc.; [liquid cooling & pumps] recommended target for liquid cooling: Yingweike; benefiting targets for pumps: Feilong Co., Ltd., Dayuan Pump Industry; [OCS] benefiting targets: Tengjing Technology, Juguang Technology, Guangku Technology, Saiwei Electronics; [server power supply] recommended target: Oulutong; [optical devices] benefiting targets: Changfei Fiber, Taicheng Technology, etc.

Risk Warning: 5G construction may fall short of expectations, AI development may fall short of expectations, China-U.S. trade friction, etc