Reference for the later part?
On GPU(s) FFT is consistently faster, but in TPU(s), for shorter sequences matrix multiplication was faster.
I still think we are comparing ASIC matmul hardware to non ASIC FFT hardware. The given TPU hardware is doing 256x256 matrix multiplication in linear time by using 256x256 multiplier grids. FFT ASIC could like do the same thing but be able to handle a much higher N size before memory becomes the bottleneck.