Google’s Q1: TPUs Go Merchant and Cloud Accelerates to 63%

This quarter, Google Cloud accelerated to 63% YoY to $20 billion, more than double the growth rate from two quarters ago, while the segment’s operating margin also almost doubled to 33%. There was an enormous backlog number shared of $460 billion, which signals that demand will persist for years to come. Perhaps more headline-grabbing was the announcement that Google plans to sell TPUs to third-party customers, marking one of the more notable challenges to Nvidia’s GPU dominance thus far. We covered this in-depth in last week’s free newsletter, which discussed why Nvidia’s 2026 is setting up to be more challenging than years’ past.

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