Broadcom and Google have entered into a long‑term agreement that will see Broadcom design and supply custom Tensor Processing Units (TPUs) and networking components for Google’s next‑generation AI data racks through 2031.
The partnership gives Google exclusive access to Broadcom‑designed silicon, reducing its reliance on third‑party chips such as Nvidia’s GPUs and enabling lower‑cost AI compute for both internal workloads and external customers.
For Broadcom, the deal provides significant revenue visibility. The company projects AI‑related revenue of $46 billion in 2026, a 134% year‑on‑year increase, and the long‑term contract is expected to contribute substantially to that growth.
The agreement also includes a separate arrangement with Anthropic, granting the AI startup access to approximately 3.5 gigawatts of compute capacity based on Google’s TPUs starting in 2027. Anthropic’s annual revenue run‑rate has surpassed $30 billion, and the company’s CFO, Krishna Rao, said, "This groundbreaking partnership with Google and Broadcom is a continuation of our disciplined approach to scaling infrastructure: we are building the capacity necessary to serve the exponential growth we have seen in our customer base while also enabling Claude to define the frontier of AI development."
Investors welcomed the announcement, reflecting confidence in the strategic value of the long‑term supply agreement and the broader AI infrastructure race.
Broadcom CEO Hock Tan expressed confidence in the company’s AI chip business, noting in a prior earnings call that "we are off to a very good start in 2026" in providing 1 gigawatt of compute from Google’s homegrown TPUs.
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