Anthropic's Gigawatt TPU Deployment Boosts Alphabet's AI Revenue Outlook

Anthropic announced it will deploy multiple gigawatts of next-generation TPUs starting in 2027, directly benefiting Alphabet via Google Cloud TPU revenue and Broadcom through co-developed chips. This commitment provides revenue visibility, with Broadcom projecting over $100 billion annual sales in custom AI chips by end-2027 and its AI semiconductor division hitting $8.4 billion last quarter (up 106% YoY). Alphabet's Google Cloud revenue surged 48% YoY last quarter, and the expanded partnership supports ongoing growth. The story, consistent across latest reports, positions Alphabet as a prime AI investment amid diversification from Nvidia.