Google Cloud begins shipping TPU systems directly to enterprise customers; becomes active chipmaker beyond internal consumption.

Google Cloud recognized TPU system sales for the first time in the second quarter, contributing to an 82% revenue surge to $24.8 billion. With these early TPU system sales, Alphabet has emerged as a semiconductor vendor in its own right.

The strategic shift is reflected in Alphabet's updated capital expenditure guidance, which now ranges from $195 billion to $205 billion for 2026. The company is building inventory to support TPU system sales, underscoring the scope of its semiconductor ambitions.

TPU system sales are now incorporated into Google Cloud's $514 billion backlog, which comprises both cloud agreements and TPU system orders. Alphabet has launched its eighth-generation TPU lineup, with the TPU 8t designed for training workloads and the TPU 8i optimized for inference.