Alphabet shares rose Wednesday after the company began selling custom TPU systems directly to select enterprise customers, adding an AI-chip business alongside Google Cloud rentals. Alphabet started recognizing direct TPU revenue in the second quarter of 2026, although most sales are expected in 2027. Google Cloud revenue rose 82% year over year to roughly $24.8 billion, while contracted revenue not yet delivered exceeded $514 billion. Alphabet spent $44.9 billion on capital expenditures in the quarter, raised full-year 2026 guidance to $195 billion-$205 billion and reported free cash flow of about negative $5.9 billion. TSMC’s CoWoS advanced packaging capacity is sold out through 2026 and into 2027, restricting TPU deliveries. Alphabet is reportedly considering Samsung as an additional supplier for components used in future TPU generations. The company also maintains AI partnerships in healthcare and government services, while analysts see potential for TPU sales to reach tens of billions of dollars in 2027-2028.