**Alphabet Confirms TPU Sales Boost Cloud Revenue by 63% in Q1**
Alphabet (NASDAQ: GOOG, GOOGL) has officially begun selling Tensor Processing Units (TPUs) directly to select clients, a move that has significantly increased its Google Cloud revenue, which grew by 63% year-over-year in the first quarter of 2023. During its quarterly conference call, management indicated that these TPU sales will be reflected in Google Cloud’s revenue figures.
The introduction of TPUs, designed specifically for AI and machine learning workloads, allows Alphabet to offer a cost-effective alternative to traditional GPU-based training, previously accessed only via Google Cloud rentals. This shift contributed to an operational margin improvement from 19% last year to 33% this year, bolstering Alphabet’s overall revenue growth of 22% and operating income increase of 30%.
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