Alphabet has started selling its custom Tensor Processing Units (TPUs) to external companies for use in private data centers.
The company confirmed first deliveries occurred in Q2 2026 and has begun recognizing revenue from these sales.
CFO Anat Ashkenazi expects the vast majority of revenue from these agreements to materialize in 2027.
This strategic shift positions Google as a direct competitor in the AI accelerator market.
Alphabet has significantly increased its 2026 capital expenditure guidance to support the expansion.