OpenAI has struck a deal with Google Cloud to tap the search giant's computing infrastructure for artificial intelligence training, according to three sources familiar with the matter, marking an unexpected partnership between two of the industry's fiercest rivals.
The agreement, finalized in May after months of negotiations, will provide OpenAI with additional computing capacity to train and deploy its AI models, including ChatGPT. The partnership comes as OpenAI's chatbot poses the biggest threat to Google's dominant search business in years, while Google's own Gemini AI competes directly with OpenAI's offerings.
The Google deal represents OpenAI's latest move to diversify its computing sources beyond Microsoft, which had served as the company's exclusive cloud provider until January12. Under the original Microsoft partnership, OpenAI required waivers to use outside cloud providers, but a revised agreement now allows the company to secure computing capacity from multiple sources1.
"This decision comes at a time when OpenAI's ChatGPT is presenting a challenge to Google's established search business," Reuters reported, citing unnamed sources who said Google executives recently indicated the AI competition may not result in a single winner2.
Neither OpenAI nor Google responded to requests for comment32. Microsoft also declined to comment on the arrangement2.
Since ChatGPT's debut in late 2022, OpenAI has faced surging demand for computing power needed to train large language models and run inference processes12. The company announced Monday that its annualized revenue run rate reached $10 billion, positioning it to hit full-year targets amid booming AI adoption13.
The Google partnership follows other major infrastructure deals. Earlier this year, OpenAI signed an $11.9 billion agreement with CoreWeave for AI infrastructure and partnered with SoftBank and Oracle on the $500 billion Stargate data center project41. The company is also developing its first proprietary chip to reduce dependence on external hardware providers12.
For Google Cloud, which generated $43 billion in sales last year representing 12% of Alphabet's revenue, landing OpenAI as a customer represents a win against competitors Amazon Web Services and Microsoft Azure12. Alphabet shares climbed approximately 3% Tuesday morning following reports of the partnership1.
The deal enables Google to expand external access to its tensor processing units, previously reserved for internal use, helping attract customers including Apple and AI startups Anthropic and Safe Superintelligence34. Both startups were founded by former OpenAI leaders, underscoring the complex web of competition and collaboration reshaping the AI industry.
