OpenAI has finalized a deal with Google to secure more computing capacity to train its AI models, Reuters reported.
The deal comes despite competition between the companies’ ChatGPT and Gemini large language models.
Google selling capacity to OpenAI potentially reduces its own capacity even as overall cloud demand has outpaced the company’s supply, Google’s CFO said in April.
OpenAI has reportedly turned to one of its biggest competitors in the AI arms race to support the training of its ChatGPT models.
The ChatGPT developer has finalized a deal to utilize Alphabet’s (GOOGL) Google cloud services to meet its increasing need for computing capacity, Reuters reported. The agreement would effectively provide OpenAI with more chips for the development of ChatGPT.
The agreement comes despite fierce competition between ChatGPT and Google’s Gemini large language model. Last month, Google introduced an “AI Mode” search feature that lets users ask questions in conversation with Gemini, a move that addresses the popularity of LLMs in how people get their information.
Google selling capacity to OpenAI potentially reduces its own even as cloud demand has outpaced the company’s supply, Alphabet CFO Anat Ashkenazi said in April. OpenAI previously relied exclusively on its partnership with Microsoft (MSFT) for its computing capacity, but the companies in January moved to a mode where Microsoft instead has right of first refusal on new OpenAI compute.
Microsoft declined to comment on the Reuters report. OpenAI and Google did not immediately respond to Investopedia requests for comment.
Shares of Alphabet gained 2% in recent trading. The stock has fallen about 5% in 2025.
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