Alphabet NASDAQ:GOOGL is trying to sell Google's tensor processing units to neocloud providers, pushing deeper into a market dominated by Nvidia's GPUs, according to The Information.
The challenge is distribution. Nvidia NASDAQ:NVDA already has close ties with major neoclouds including CoreWeave NASDAQ:CRWV, Nebius NASDAQ:NBIS and Lambda. Nscale, another fast-growing provider, reportedly told Google that its active clusters and customer discussions remain focused on GPU capacity.
Google designs TPUs specifically for artificial intelligence workloads and uses most of them inside its own data centers. The chips already support customers including Anthropic, Meta Platforms NASDAQ:META and Apple NASDAQ:AAPL, while Google Cloud sells access to them through its infrastructure platform.
Smaller neoclouds may offer a clearer opening. Google is also working with Blackstone on a TPU-based neocloud that is expected to begin renting computing capacity to AI labs, financial firms and high-performance computing customers next year.