Alphabet announced that Oracle will market Google’s tensor processing units, giving customers access to the chips outside Google’s infrastructure for the first time. Google Cloud generated $25 billion in revenue in the second quarter, compared with $42 billion for Amazon Web Services and $29 billion for Microsoft Azure, but Alphabet is growing at the fastest rate. TD Cowen estimates chip sales will reach $9.4 billion in the second half and $62.5 billion in 2027, while Wells Fargo forecasts $99 billion in 2026. Anthropic and OpenAI plan to buy the chips, which cost about 44% less to operate than an Nvidia GB200 server but carry an estimated 20% operating margin, compared with roughly 35% for Google’s cloud business.
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