OpenAI has turned to Google for assistance with its increasing computing demands, according to sources familiar with the matter. This unexpected move comes despite the competition between the two tech giants in the field of artificial intelligence, highlighting the immense need for computing power to train and operate AI models.
The deal between OpenAI and Google was reportedly finalized in May after extensive discussions. OpenAI has been working on reducing its reliance on Microsoft by incorporating other cloud providers to meet the growing demand for computing resources. This includes supporting significant projects like Stargate and fulfilling commitments made in recent agreements with chip manufacturers and infrastructure vendors.
For Google, this deal represents an opportunity to add a prominent customer to its cloud platform. The company will provide additional computing resources to support OpenAI’s AI training and model operations. This partnership comes at a time when ChatGPT, developed by OpenAI, is challenging Google’s core search business. However, Google executives have acknowledged the potential for multiple winners in the AI industry.
Both OpenAI, Google, and Microsoft have declined to comment on the deal. Since the launch of ChatGPT in late 2022, OpenAI has been under pressure to increase its compute capacity to train large language models and run inference in real-time. The company recently announced that its annualized revenue had reached $10 billion as of June 2025, driven by the growing use of its tools.
Earlier this year, OpenAI partnered with SoftBank and Oracle on the Stargate project and signed agreements with CoreWeave. The company is also reportedly working on developing its own chip to reduce reliance on external hardware. The deal with Google marks a shift from OpenAI’s exclusive reliance on Microsoft’s Azure, with talks between OpenAI and Google ongoing for some time.
Google’s use of tensor processing units (TPUs) aligns with its strategy to expand the use of in-house chips. TPUs were previously limited to internal projects but are now being used by external clients, including Apple and competitors of OpenAI. Adding OpenAI to its cloud customer list presents Google with an opportunity to grow its cloud business further.
Despite the potential benefits of the deal, Google faces challenges such as increased capital spending on AI and pressure from regulators and investors. The deal also adds complexity internally, as Google’s AI lab DeepMind competes with OpenAI. CEO Sundar Pichai will need to balance the demands of enterprise customers with those of Google’s AI teams.
These developments highlight the evolving landscape of the tech industry, where partnerships and competition coexist. As companies like OpenAI and Google navigate these complexities, the future of AI and cloud computing continues to evolve.
