Earlier quoted context omitted.
Pretty sure it'd just be a thumbdrive. Are the Taalas chips particularly large in surface area?
The only product they've announced at the moment [0] is a PCI-e card. It's more like a small power bank than a big thumb drive. But sure, the next generation could be much smaller. It doesn't require battery cells, (much) heat management, or ruggedization, all of which put hard limits on how much you can miniaturise power banks. [0] https://taalas.com/the-path-to-ubiquitous-ai/
But as you said, the next generations are very likely to shrink (especially with them saying they want to do top of the line models in 2 generations), and with architecture improvements it could probably get much smaller.