Google Cloud’s 63% Growth, Custom TPUs and $3.5B Cerebras IPO Pressure Nvidia
Google Cloud revenue rose 63% in Q1 2026, outpacing Azure’s 40% and AWS’s 28% by deploying custom TPUs and boosting cloud AI sales 800%. Hyperscalers spent $2B on Marvell chips, Cerebras filed a $3.5B IPO for 28M shares at $115-$125 and Anthropic is negotiating with Fractile to limit H100 usage.
1. Google Cloud Outperformance
Google Cloud grew 63% in Q1 2026, outpacing Microsoft Azure’s 40% and Amazon AWS’s 28%. The business attributes its performance to deploying custom Tensor Processing Units and generating an 800% year-over-year increase in cloud AI revenue.
2. Hyperscaler Investment in Marvell
Major hyperscalers have committed roughly $2 billion to Marvell Technology’s custom AI chips to cut costs and lessen dependence on external chip suppliers like Nvidia. Analysts project ASIC shipments could triple by 2027, highlighting a shift toward in-house accelerator development.
3. Cerebras IPO Details
Cerebras Systems is pursuing a $3.5 billion IPO by offering 28 million shares priced between $115 and $125 on Nasdaq. The company’s wafer-scale engine hardware claims faster AI model performance, positioning it as a growing threat to Nvidia’s market share.
4. Anthropic’s Fractile Partnership
Anthropic is in discussions with Fractile to secure next-generation inference chips, aiming to reduce reliance on Nvidia H100 units. Fractile’s memory-compute fusion design could run large language models up to 100 times faster and cut operational costs by 90% when commercialized.