Google to sell its TPUs to some customers, who also fancy big-G GPUs
Google Cloud will begin selling its custom tensor processing units (TPUs) to a select group of customers, including AI labs and high-performance computing firms, as demand for AI hardware grows. The move aims to diversify revenue and support future silicon research, with initial sales expected to contribute modestly in 2026 and more significantly in 2027. Google Cloud continues to see strong growth, reporting $20 billion in Q1 2026 revenue and a $460 billion backlog of undelivered contracts.
- ▪Google Cloud will start delivering its custom TPUs to select customers in their own data centers due to rising demand from AI labs and other sectors.
- ▪CEO Sundar Pichai noted strong customer interest in both Google's TPUs and its GPU offerings.
- ▪CFO Anat Ashkenazi stated that TPU hardware revenues will fluctuate quarterly and have a more noticeable impact on the balance sheet in 2027.
- ▪Google Cloud reported over $20 billion in revenue for Q1 2026, a 63% increase year-over-year.
- ▪The company has a $460 billion backlog of undelivered cloud contracts, nearly double the previous quarter.
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Off-Prem Google to sell its TPUs to some customers, who also fancy big-G GPUs AI is driving more searches and ads Simon Sharwood Thu 30 Apr 2026 // 03:49 UTC Google Cloud will start selling its custom tensor processing units to some customers, because they want them and the search giant wants to diversify its revenues. News of the chip sales emerged on Wednesday during the Q1 2026 earnings call for Alphabet, Google’s parent company. CEO Sundar Pichai said Google has observed growing demand for TPUs from “AI labs, capital markets firms and high-performance computing applications” and will therefore “begin to deliver TPUs to a select group of customers in their own data centers.” The CEO said some customers have shown “massive interest in our GPU offerings as well.” <a…
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