TPU's have a TPU-TPU interconnect that is faster and lower latency than any GPU cluster [1]. That said this is a huge leap for GPU's on GCP. For A100's SOTA is 1.6tbit per host over Infiniband (which azure and some smaller gpu clouds provided), AWS had 400-800 Gbit and GCP had .... ~100gbit.
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.