No, it is the 9,163,584th [0] indication that Google likes to pursue multiple solutions in the same space in parallel with different submarkets, risk profiles, expected payoff terms, or other dimensions.
[0] this is a conservative estimate
The only alternative I could imagine is that TPUs will "win" at supercomputers exclusivity aimed at inference (as opposed to training). Since TPUs excel at inference. The question is how much ML compute is used for inference as opposed to training. Not much, I guess, otherwise something like TPUs would be more popular.
Different workloads require different infrastructure.
Can your workload saturate the TPU without getting throttled by memory or network? Great! Use TPUs and reduce training cost.
But if your TPUs are idle 70% of the time because the constraint is getting data to them ...
"A3 represents the first production-level deployment of its GPU-to-GPU data interface, which allows for sharing data at 200 Gbps while bypassing the host CPU. This interface, which Google calls the Infrastructure Processing Unit (IPU), results in a 10x uplift in available network bandwidth for A3 virtual machines (VM) compared to A2 VMs."
SOTA seems to be 3.2Tbit for H100 clusters so this still seems a bit slow? (Tricky as they don't give us a clear number just 10x). H100's are much more powerful per chip though so at least initially the clusters will be smaller and not network bound.
The tricky thing is no one other than Azure of the big providers seems willing to pay Nvidia's margins for RDMA switches, it seems this is still the case.
Clouds offer many competing offerings because different clients have different needs.