Broadcom Accelerates Anthropic TPU Shipments, Raising Questions About Google’s Revenue Impact
Broadcom Inc. (NASDAQ:AVGO) is ramping up shipments of its Ironwood AI chips to Anthropic in the fourth quarter and beyond, with management projecting significant gigawatt-level deployments through 2028. This development highlights Alphabet Inc.’s (NASDAQ:GOOGL) TPU technology as a central component for both companies but raises questions about how much revenue or profit Google actually earns from these arrangements. In April 2026, Broadcom disclosed agreements to supply future TPUs and related infrastructure to Google through 2031. Separately, Anthropic is expected to access up to 3.5 gigawatts of TPU capacity by 2027 via Broadcom. However, the September update shows a more aggressive deployment schedule than previously outlined in contractual terms. Broadcom’s Q3 AI semiconductor revenue surged 221% year-over-year to $16.7 billion and is projected at $21.7 billion for Q4. While this signals strong demand, it remains unclear how much of the economic benefit flows directly to Google or whether Alphabet can sustain profitability from its TPU-driven cloud expansion.
Topics: AI hardware custom accelerators semiconductor sales strategic partnerships TPU technology