In May 2025, OpenAI officially signed an agreement to utilize Google Cloud services to handle the surging computational needs for training and running advanced AI models like ChatGPT. This new partnership brings to an end OpenAI's exclusivity with Microsoft Azure and stands as a notable collaboration between two rivals at the forefront of artificial intelligence innovation.
As part of the arrangement, OpenAI gains access to Google’s specially designed Tensor Processing Units (TPUs), which are optimized for large-scale machine learning workloads. Sources close to the negotiations indicate that discussions had been underway for several months before the deal was finalized in May. While OpenAI is not receiving Google’s most advanced TPUs, the move is seen as a calculated strategy to help offset the company’s escalating operational costs.
Until now, OpenAI has heavily relied on Nvidia GPUs accessed through Microsoft’s Azure infrastructure. However, the explosive growth in demand for ChatGPT has forced the company to diversify its computing resources. Since early 2025, OpenAI has also been exploring partnerships with Oracle and developing the Stargate supercomputer through collaborations with Microsoft and CoreWeave.
For Google Cloud, clinching this agreement provides a significant opportunity to showcase the capabilities of its TPUs and expand its share of the cloud services market, traditionally dominated by Amazon Web Services and Microsoft. This partnership highlights a broader shift in the AI industry’s dynamics, from absolute competition towards practical coalitions—alliances formed to grapple with the daunting infrastructure challenges that come with large-scale AI.
Executives from both companies have declined to provide specific details regarding the financial terms or technical specs involved in the deal. Nonetheless, industry analysts believe this collaboration could drive wider adoption of multi-cloud strategies and accelerate AI innovation across a range of sectors. With OpenAI’s annual revenue estimated to reach USD $10 billion, diversifying cloud providers is increasingly seen as essential for maintaining stability and continuity of service.
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