TPU-As-A-Service could boost Google’s 2028 profit by over 15%: Barclays

Barclays argued Alphabet’s proposed TPU-as-a-service model could become a major long-term earnings driver, potentially lifting 2028 gross profit by about 15% and materially boosting operating income. The note says Google could sell its proprietary TPUs directly to external AI developers, starting with Anthropic, instead of only through Google Cloud. Barclays believes this could expand AI compute supply, improve Alphabet’s capital efficiency, and support a more asset-light infrastructure strategy. The firm kept an Overweight rating and $425 price target on Alphabet, while also raising its cloud revenue and operating income forecasts. Barclays estimates the opportunity could generate roughly $250 billion in TPU-as-a-service revenue by 2028 if scaled successfully. The stock reaction in the article is mildly positive, with investors seeing upside from AI infrastructure monetization.