Google’s TPU Sales Could Add $170 Billion Through 2028

Alphabet’s external sales of its AI chips could bring in about $170 billion through 2028, according to an Oppenheimer forecast. The estimate gives new scale to Google’s effort to compete with Nvidia in AI computing.

Oppenheimer projects sales of about 6.6 gigawatts of Google’s Tensor Processing Units, or TPUs, over that period. It estimates those sales could lift Google Cloud revenue above current Wall Street forecasts by 15% in 2027 and 30% in 2028. Those are analyst projections, not company guidance.

Alphabet began recognizing revenue from TPU system sales in the second quarter of 2026, its filing says. The company has signed a limited number of supply agreements for customers with specialized, large-scale workloads, and expects most of the revenue from them in 2027.

Google Cloud’s recent growth offers a measure of demand. Revenue rose 82% to $24.8 billion in the second quarter, Alphabet reported. The cloud business also sells access to Nvidia GPUs, so the TPU push adds another option rather than replacing Nvidia across Google’s services.

A separate Google-Blackstone venture aims to make TPUs available outside Google Cloud. Blackstone committed an initial $5 billion and says the venture plans to bring 500 megawatts of capacity online in 2027. Google will supply chips, software and services.

The arrangement tackles a hurdle beyond chip design: customers need data centers and a way to access computing capacity. Blackstone brings infrastructure investment, while Google brings its hardware and software. Together, they can offer buyers another route to run AI workloads.

The next test is execution. Investors will look for signs that Google can deliver systems on schedule and turn forecast demand into reported sales. Alphabet’s filing points to 2027 as the larger revenue year, leaving the near-term contribution limited.