OpenAI and Google Join Forces in Unexpected AI Cloud Deal
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In a move few saw coming, OpenAI has officially signed on to use Google’s cloud infrastructure—despite being two of the fiercest competitors in the artificial intelligence space. The deal, quietly finalized in May, marks a major shift in the AI power dynamic, as OpenAI diversifies beyond Microsoft, its longtime backer and exclusive cloud provider until earlier this year.
Sources say OpenAI turned to Google to help meet the skyrocketing demand for computing power—especially as it scales ChatGPT and trains increasingly complex AI models. With its annual revenue now pushing $10 billion, OpenAI is scrambling to keep up, even as it builds its own chips and develops the massive Stargate infrastructure project with SoftBank and Oracle.
For Google, landing OpenAI as a cloud customer is a massive win. It reinforces Google Cloud’s rising status as the go-to platform for AI startups—even those competing directly with Google’s own Gemini models. But it also introduces a new balancing act for Alphabet CEO Sundar Pichai, who must now juggle Google’s AI ambitions with the needs of a direct rival renting space in their servers.
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