Alphabet expands AI chip monetization and Waymo operations

Alphabet Inc. is expanding its footprint in the artificial intelligence and cloud computing sectors. For the first time, the company has begun directly monetizing its Tensor Processing Units (TPUs), transitioning from using them strictly in-house to shipping them to third-party data centers. This move coincides with a significant 82% year-over-year revenue increase in its cloud computing division.

In its autonomous driving division, Waymo has received approval to operate thousands of robotaxis in Nevada and has expanded its service areas in Los Angeles, Phoenix, and San Francisco. Waymo is also developing custom AI chips to reduce reliance on external providers like Nvidia and AMD.

To support its AI infrastructure, Alphabet has entered an expanded custom-silicon relationship with Marvell Technology, covering components for the TPU ecosystem. On the investment front, Berkshire Hathaway has significantly increased its position in Alphabet, while various institutional investors, including Elyxium Wealth LLC, have also adjusted their holdings in the company.