OpenAI has struck a deal to use Google’s cloud computing infrastructure for AI despite the two companies’ fierce competition in the space, reports Reuters. The agreement, finalized in May after months of negotiations, marks a shift in OpenAI’s strategy to diversify its computing resources beyond Microsoft Azure, which had been its exclusive cloud provider until January.
Microsoft’s long-standing partnership with OpenAI dates back to 2019, with significant expansions of investment from the computer giant in 2021 and 2023. In October, The Information reported that the ChatGPT maker had begun to seek data center deals elsewhere, citing the need for more AI data center servers faster than Microsoft could supply them.
Under the new deal, Google Cloud will provide additional computing capacity to help OpenAI train and run its AI models. For OpenAI, the partnership addresses growing demands for computing power as the company’s annual revenue reached $10 billion as of June, according to sources familiar with the matter who spoke to Reuters.
The partnership, which took shape despite an intense rivalry in the AI space between Google and OpenAI, shows how competitors sometimes form alliances when they are mutually beneficial.
The company’s DeepMind AI unit competes directly with OpenAI in developing AI models and consumer applications. OpenAI’s ChatGPT arguably poses the most serious threat to Google’s search business in years, but Google’s CEO recently suggested the AI race may not be winner-take-all.