Google has plenty of chips to sell. It would rather keep them to avoid falling behind in the AGI race

Alphabet said it will reserve TPU compute for its internal AI and AGI efforts before allocating capacity to customers.

It also raised its 2024 AI infrastructure spending outlook amid chip shortages, even as Google Cloud and Search kept growing strongly.

Free cash flow turned negative for the quarter, and the stock fell after the earnings report.

The move underscores how central AGI has become to Big Tech strategy and how AI chip constraints are reshaping cloud competition and profitability.