Overview
- Broadcom and Alphabet expanded their long-running TPU partnership through 2031, adding supply assurance for networking and rack-level systems.
- Anthropic obtained rights to about 3.5 gigawatts of TPU compute starting in 2027, with deployments available through Google Cloud or Broadcom-supplied racks and contingent on Anthropic’s business performance.
- Following the news, UBS raised its fiscal 2027 AI revenue estimate for Broadcom to $145 billion and lifted 2027 unit assumptions to about 7 million TPUs, while other firms delivered mixed ratings.
- Analyst models now peg Anthropic-linked TPU orders near $50 billion across upcoming years, reflecting the scale of potential deployments tied to the new framework.
- TPUs are Google-designed application-specific chips built with Broadcom that target known AI workloads to cut cost and power use versus general-purpose GPUs, creating a new path for Google to sell its silicon to outside customers.