Google sells TPUs through Oracle cloud

Alphabet announced that Oracle will offer Google's tensor processing units, the first time customers can access TPUs outside Google's own infrastructure. The move extends Google's push to sell AI chips externally and challenge Nvidia, with Anthropic and OpenAI as major TPU buyers.

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Google is turning TPUs into a merchant AI-chip business by distributing them through Oracle's cloud, widening its reach beyond its own data centers. Analysts model TPU sales of $9-10 billion in the second half of 2026 and $62-99 billion in 2027, which would make Google a credible Nvidia challenger. External TPU sales carry a roughly 20% operating margin versus about 35% for overall cloud, so the mix shift could dilute Google Cloud margins even as revenue grows near 90%. Anthropic and OpenAI as customers deepen Google's role as supplier to its model rivals, and Broadcom's $63 billion lease vehicle shows capital markets financing TPU buildouts. Nvidia faces more competitive pressure on price-performance, while Oracle gains a differentiated AI offering.