![\"Inside](\"https:\/\/www.europesays.com\/ai\/wp-content\/uploads\/2026\/05\/1f225d65122faf425be95ab8746dbf9a.jpeg\")
Image source: Getty Images. What’s actually confirmed <\/p>\n
In early April, Anthropic officially announced a new agreement with Google and chip-design specialist Broadcom for multiple gigawatts of next-generation tensor processing unit (TPU) capacity that’s expected to start coming online in 2027. TPUs are Google’s custom-built AI accelerators, and they have emerged as a credible alternative to Nvidia’s graphics processing units (GPUs) for both AI model training and the inference work that runs models in production.<\/p>\n
What’s new this week is the reported size of Anthropic’s commitment behind that capacity. According to The Information, the AI specialist plans to spend about $200 billion with Google over five years, beginning in 2027. If that number holds up, it would account for more than 40% of the cloud backlog Alphabet disclosed in its most recent quarterly results.<\/p>\n
Even setting aside the headline figure, the official April announcement gave investors plenty to chew on. Anthropic disclosed that its run rate revenue had crossed $30 billion — up from roughly $9 billion at the end of 2025. And in the press release, Anthropic chief financial officer Krishna Rao described the deal as the AI start-up’s “most significant compute commitment to date.”<\/p>\n
A clear shift in AI infrastructure <\/p>\n
Whether this report from The Information comes to fruition or not, we already know that Alphabet’s cloud computing<\/a> business is seeing staggering growth. In fact, Google Cloud is no longer just outgrowing the rest of the business. It’s accelerating sharply.<\/p>\n In Alphabet’s first quarter of 2026, Google Cloud revenue rose 63% year over year to $20.0 billion, and segment operating income roughly tripled to $6.6 billion. That’s a meaningful step-up from 48% growth in the fourth quarter of 2025 and 34% growth in the third quarter of 2025. Further, Google Cloud’s revenue backlog nearly doubled sequentially to more than $460 billion. For perspective, that figure was around $155 billion just two quarters earlier.<\/p>\n Story Continues <\/p>\n Some of that demand is now spilling into Alphabet’s hardware sales channel. On Alphabet’s first-quarter earnings call last week, CEO Sundar Pichai said the company will begin shipping TPU hardware to “a select group of customers in their own data centers” — a notable expansion beyond simply renting TPU capacity through Google Cloud. Pichai also acknowledged that Alphabet remains “compute constrained in the near term,” and that cloud revenue would have been higher had supply matched demand.<\/p>\n Overall, this news of a potential $200 billion deal would only bolster an already strong bull case for Alphabet stock.<\/p>\n Sure, the stock has had quite a run — shares are up about 30% over the past month and are trading near all-time highs. Yet at about 30 times earnings<\/a>, with cloud revenue accelerating, a $460 billion backlog, and TPU sales now spilling into a new direct-to-customer hardware channel, the business may finally be growing into — and arguably past — its valuation. Even after that recent run-up, Alphabet still looks like a buy.<\/p>\n Should you buy stock in Alphabet right now? <\/p>\n Before you buy stock in Alphabet, consider this:<\/p>\n The Motley Fool Stock Advisor analyst team just identified what they believe are the\u00a010 best stocks<\/a> for investors to buy now\u2026 and Alphabet wasn\u2019t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.<\/p>\n Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation,\u00a0you\u2019d have $476,034!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you\u2019d have $1,274,109!*<\/p>\n Now, it\u2019s worth noting\u00a0Stock Advisor\u2019s total average return is 974% \u2014 a market-crushing outperformance compared to 206% for the S&P 500.\u00a0Don’t miss the latest top 10 list, available with\u00a0Stock Advisor, and join an investing community built by individual investors for individual investors.<\/p>\n See the 10 stocks \u00bb<\/a><\/p>\n *Stock Advisor returns as of May 7, 2026. <\/p>\n Daniel Sparks<\/a> and his clients have no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet and Broadcom. The Motley Fool has a disclosure policy<\/a>.<\/p>\n