Alphabet has guaranteed $3.2 billion for its Lake Mariner data center in New York to lease thousands of TPUs to Anthropic. Google Cloud’s growth and margins have outpaced AWS and Azure, supported by a $462 billion backlog and accelerating Search AI monetization.
Alphabet has committed a $3.2 billion financial guarantee to back the Lake Mariner data center in western New York, where developers will lease thousands of its custom Tensor Processing Units (TPUs) to Anthropic. This marks a shift to bundling in-house hardware with cloud services, software tools and customer support in a bid to convert TPUs into an external revenue stream.
By offering full AI systems rather than standalone chips, Alphabet aims to challenge Nvidia’s dominance in training and running large models. Positioning TPUs as a serious alternative to GPUs could reduce reliance on external suppliers and open a new high-margin business line as AI workloads scale.
Google Cloud has delivered revenue growth and improved margins that exceed those of AWS and Azure, driven by a $462 billion services backlog. Four consecutive quarters of accelerating Search AI monetization have underpinned this performance, justifying elevated capital expenditures planned for fiscal 2026 and 2027 to expand capacity and AI capabilities.
Finance
