Watch Desk posted an update
Alphabet could generate $80bn to $100bn in cumulative revenue from external sales of its AI chips by 2028, according to BNP Paribas analyst Nick Jones, as reported by Benzinga.
Why it mattersJones estimates Alphabet has secured more than 5 gigawatts of TPU capacity commitments from Anthropic and Blackstone, with most deliveries expected to begin in 2027. He forecasts more than $4bn in TPU revenue this year, rising to over $40bn in 2027. That is a sizeable bet on Google’s chips becoming a business beyond its own data centres. It is an analyst forecast, not revenue already booked, and Jones also expects the sales push to put some near-term pressure on Google Cloud’s margins.
Discuss: How much should investors value a chip opportunity that could grow quickly but squeeze margins along the way?
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