BlockBeats News, August 7th, following a personnel shakeup at Google DeepMind, the market's focus on the Alphabet AI story is shifting from model rankings to cloud business monetization.

AI market research firm SemiAnalysis stated in its latest report that Demis Hassabis stepping back from DeepMind's day-to-day management, Jeff Dean founding Discovery Loop with Sanjay Ghemawat, Quoc Le, and Oriol Vinyals, along with Koray Kavukcuoglu taking over Gemini/DeepMind, signify a profound restructuring of Google's cutting-edge model team.

SemiAnalysis assessed that Gemini 3 Pro may have already marked a milestone in Google's model competitiveness, as Gemini's performance in 2026 has notably lagged behind rivals such as OpenAI and Anthropic.

However, SemiAnalysis believes the primary beneficiary of this adjustment will be Google Cloud. In the past, Gemini and GCP competed for computing resources, but now the resource allocation is more inclined towards cloud business and TPU commercialization.

SemiAnalysis estimated that Gemini's Q2 2026 ARR is approximately $12 billion, and by the end of 2027, GCP's third-party AI IaaS/TaaS ARR may exceed $73 billion, with TPU sales reaching $120 billion.

This also explains the recent repricing of AI capital expenditure by the market on large tech companies. While investors are concerned about model companies burning cash too quickly, they are still willing to attribute higher certainty to companies that can sell computing power, cloud services, and accelerators. SemiAnalysis noted that GCP grew 82% last quarter, partly due to the external sale of TPU systems to support data centers for clients like Anthropic. With TPU backlogs expanding, GCP's growth rate in 2027 could significantly surpass seller consensus, providing incremental earnings contributions to Alphabet per share.

SemiAnalysis believes that the main storyline of Google's AI story may be undergoing a rewrite. If Gemini continues to lag, it will weaken Alphabet's narrative in the cutting-edge model competition; however, if GCP can continually convert TPU and computing demand into revenue, the market's valuation anchor for Alphabet will increasingly focus on cloud infrastructure, enterprise AI platforms, and computing supply capabilities.