On April 29, Alphabet CEO Sundar Pichai announced Google will begin selling its Tensor Processing Units directly to select customers’ data centers, transforming Google into a chip merchant. The company plans to ship 4.3 million TPUs in 2026, then ramp to more than 35 million units by 2028. Morgan Stanley estimates that selling 500,000 TPU chips alone could generate approximately $13 billion in revenue for Google by 2027. Anthropic has reportedly committed to deploying up to one million TPUs and investing in approximately 3.5 gigawatts of power capacity starting in 2027. Meta is also said to be in discussions about substantial TPU commitments. Most revenue is expected in 2027, with initial shipments to customer data centers happening within this year. Pichai unveiled the strategy during Google’s Q1 earnings call. The internal groundwork for this commercial move started in 2022, when Google reorganized to give Google Cloud greater control over TPU allocation.