The Business Engineer

The Business Engineer

Google's TPU AI Compute Arbitrage

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Gennaro Cuofano's avatar
Gennaro Cuofano
Feb 10, 2026
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Google Cloud is executing a compute strategy that transforms how cloud infrastructure economics work. While every other hyperscaler rents NVIDIA hardware at market rates and competes on margins, Google operates a heterogeneous architecture in which custom silicon creates structural cost advantages that fund competitive GPU offerings, and the two reinforce each other in ways competitors cannot replicate.

Here is how the strategy actually works.

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