Google Strikes TPU Supply Pact Through 2031, Powers Anthropic's $30B Growth
Alphabet's Google has entered a long-term agreement with Broadcom to supply tensor processing units through 2031, bolstering its AI chip availability to rival Nvidia. The deal expands a strategic collaboration granting Anthropic 3.5 gigawatts of compute capacity from 2027 to support enterprise AI demand and potential Google Cloud revenue growth.
1. Long-Term TPU Supply Agreement
Alphabet's Google and Broadcom have sealed a long-term supply agreement that runs through 2031. Under this deal Broadcom will develop chips using Google's tensor processing unit architecture, ensuring supply assurance and boosting Google's AI hardware availability to compete with Nvidia chip offerings.
2. Expanded Anthropic Compute Capacity
This partnership is part of a broader strategic collaboration that will allow AI startup Anthropic to access approximately 3.5 gigawatts of compute capacity beginning in 2027. That capacity provision supports Anthropic's revenue run rate growth — now at $30 billion — and its expanding base of enterprise customers.
3. Implications for Google Cloud
The expanded chip supply and compute capacity position Google Cloud to enhance its AI infrastructure and services. By securing committed TPU supply and powering leading AI startups, Google may see increased enterprise adoption, which could drive significant revenue growth in its cloud segment.