Oracle to Rent Out Google's TPUs in 2027 as Google Opens Chip Channel

Oracle will rent out Google's tensor processing units from its own cloud starting in 2027, CNBC reported. It is the first time Google's custom chips will run on another hyperscaler's cloud.

The deal is being pushed by Thomas Kurian, Google's cloud boss, who spent more than 20 years at Oracle before joining Google in 2018. Google has been developing TPUs since 2013 but, until now, kept them inside its own infrastructure. The announcement was made at Oracle AI World in Las Vegas on October 27.

Oracle is not the only outside channel. Data Center Dynamics reported that Bank of America, Blackstone, Citigroup and Morgan Stanley have entered into a $63 billion loan agreement, engineered by Broadcom and known as Project North Star, to buy Broadcom-developed Google TPUs and networking equipment and lease them to Anthropic for a five-year term. Delivery of the semiconductors is expected to start in 2027.

The analyst math is already moving. TD Cowen models $9.4 billion in TPU sales for the second half of this year and $62.5 billion for 2027. Google is also working with Anthropic directly, has public reference customers including Apple scaling pretraining of its foundation models on the latest generation of TPUs, and has entered partnerships with Crux AI and Oracle, with more in the works. This is our 194th Google story in the last 90 days, and the one most likely to re-price AI infrastructure assumptions heading into 2027.