Analysts split on Google's merchant TPU: $100B vs $252.7B by 2028 forecasts
Beth_Kindig · x · 2026-10-29
Analyst Beth Kindig sums up wildly divergent forecasts for Google's merchant TPU business: Barclays sees revenue ramping from $20B in 2026 to $252.7B by 2028, while Piper Sandler ($104B) and JP Morgan ($100B+) are far more conservative. Google booked first TPU systems revenue in Q2 on a small base, and Cloud revenue growth accelerated to 82% ($24.8B vs $22.5B expected). The piece argues custom silicon cuts Google's cost per token and opens a revenue stream beyond cloud rentals, with new TPU 8t/8i claiming big perf-per-dollar gains over TPU v7 Ironwood — and TPU strategy likely dominating next week's Q3 earnings call.
More from Venture
- AI Shopping App scene Raises $7M Led by Lightspeed to Kill the Search Bar — SucceededMind · 2026-10-29
- Besides Anthropic, is anyone serving AI inference at software gross margins? — matt_slotnick · 2026-10-29
- Biden's Ex-Antitrust Chiefs Launch FluxCap, an AI Legal Startup — ashleymayer · 2026-10-29
- Anthropic's H1 GAAP Loss Hits $80.7B While Adjusted Metric Shows $2.7B Profit — GaryMarcus · 2026-10-29
- AI is now so cheap the optimal move is launching dozens of parallel bets — EXM7777 · 2026-10-29
- Indie developer taking on GoDaddy to launch a $20/mo plan by year-end — MickeySteamboat · 2026-10-29