Source: CNBC
Internal Google teams are losing priority access to TPUs—the custom chips essential for training frontier AI models—while Google Cloud sells the same infrastructure to competitors like Anthropic. Revenue from external customers now outweighs internal R&D priorities, creating a structural misalignment between Google's research division and its cloud business unit. This puts Google at a disadvantage against Anthropic and OpenAI, whose focused, well-capitalized teams face no internal resource competition.