"CEO Sundar Pichai stated that 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.'"
"CFO Anat Ashkenazi mentioned that Google will record some revenue from TPU sales this year, but the balance sheet impact will be more marked in 2027, emphasizing that 'revenues from TPU hardware sales will fluctuate from quarter to quarter depending on when TPUs are shipped to customers.'"
"Pichai believes that selling chips will pay off by helping to fund research on next-gen silicon and creating economies of scale that make it easier for Google to build kit for its own use."
"Despite not selling TPUs, Google Cloud's revenue for Q1 2026 was just over $20 billion, a 63 percent increase from the previous year, with a $460 billion backlog of undelivered contracts."
Google Cloud plans to sell its custom tensor processing units (TPUs) to select customers, responding to increased demand from AI labs and high-performance computing. CEO Sundar Pichai noted significant interest in both TPUs and GPUs. CFO Anat Ashkenazi indicated that revenue from TPU sales will begin this year, with a more substantial impact expected in 2027. Despite fluctuations in revenue, Pichai believes selling chips will support research and economies of scale. Google Cloud's revenue for Q1 2026 reached over $20 billion, with a substantial backlog of contracts.
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