Google TPU demand heats up as Oracle resells and OpenAI reportedly plans purchases

[The Information] Google's in-house AI chips, tensor processing units, are set to be a focus when parent Alphabet reports third-quarter earnings on Oct. 28, according to The Information. Google said Oracle will become the first major cloud provider outside Google itself to offer TPUs to customers through its own data centers, and The Information's Ryan Barwick reported that OpenAI plans to buy Google's TPUs. Anthropic's IPO prospectus disclosed a plan to spend $114.5 billion with Google Cloud, an estimated additional $125 billion to $150 billion on TPUs with Google and other providers, and $161.2 billion for TPU compute with Broadcom. Google CFO Anat Ashkenazi said on a prior earnings call that the vast majority of revenue from TPU agreements would kick in next year. TD Cowen's John Blackledge estimated in a report this month that TPUs will generate $9.4 billion in sales in the second half of this year, about 13% of the roughly $70 billion he forecast for Google Cloud in that period, and could be a $138 billion business by 2028, or 34% of estimated Google Cloud revenue that year. Nvidia separately said it would expand its partnership with Meta and invest $3 billion in Meta's stock offerings announced this week.