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And what's amazing is that it was built on 28nm. So TPU 2.0 could increase by another 2x in perf/W just by going to 14nm (most likely) - even more if it's built on newer processes than that.

Intel's latest chips will be even further behind compared to the next-generation TPU than Haswell was compared to TPU 1.0.

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28nm was quite a cheap fabrication technology even in 2015, but it costs a lot to have a completely custom production run. My guess it that it approximately works out in savings of power and space over the lifetime of the chip. It probably doesn't make sense for them to move to something smaller (and thus more expensive) whilst the performance benefit remains so substantial. If I were Intel, I probably wouldn't lose too much sleep over it either, because you still need something to attach the highly-specialised TPU to, and that'll be a Xeon for the forseeable future.

Agreed, the market for these chips is pretty small at the moment. What other platforms would need these other than cloud? Cars? Phones .... maybe?

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