Google alters its cloud playbook, enlisting partners to sell more AI chips
Google is opening its TPU business beyond its own cloud as custom chips become a bigger engine for growth.

TL;DR
- Google is making its custom Tensor Processing Units (TPUs) available outside of its own cloud infrastructure for the first time.
- Oracle will offer Google's TPUs, marking a significant expansion of Google's AI chip business beyond its internal use.
- This strategy is designed to increase Google's market share in the AI chip market, challenging Nvidia's dominance.
- Analysts project substantial growth for Google's TPU business, with estimates reaching tens of billions of dollars in the coming years.
- Google's cloud revenue is growing rapidly, outpacing competitors in terms of acceleration, with TPUs contributing to this momentum.
- The company is partnering with major AI players like Anthropic and OpenAI, who will utilize Google's TPUs, even as they compete with Google's own AI models.
- While external TPU sales may have lower margins than internal cloud services, the significant volume potential is seen as a key growth driver.
- Partnerships, such as the one involving Broadcom, Blackstone, and major banks to finance Anthropic's TPU purchases, highlight the ecosystem developing around Google's AI hardware.