Connect with us

Hi, what are you looking for?

News

OpenAI looks beyond Nvidia, plans to buy Google’s AI chips: report

OpenAI is reportedly planning to purchase artificial intelligence chips from Alphabet’s Google GOOG, as the ChatGPT maker looks to expand computing capacity and diversify its supply of processors amid surging demand for AI services.

The proposed deal, reported by The Information late Tuesday, has not been officially announced by either company. Final terms are still being determined, according to the report.

The move would deepen infrastructure ties between two companies competing in generative AI and search, highlighting how the race to build and run increasingly powerful AI models is driving partnerships beyond traditional competitive boundaries.

OpenAI expands its chip options

OpenAI is among Nvidia’s largest customers for graphics processing units (GPUs), which are widely used to train and run AI models.

Google’s tensor processing units (TPUs), meanwhile, have attracted interest as an alternative that could help customers manage computing costs.

Google has expanded access to its custom-designed chips for external customers this year.

OpenAI began renting Google TPUs through Google Cloud in 2025, establishing an existing commercial relationship between the companies.

The reported plan could give OpenAI another source of computing power as it seeks to meet growing demand for its AI products and reduce dependence on a single supplier.

OpenAI is also developing its own AI chips, code-named Jalapeno, in partnership with Broadcom.

The company plans to deploy the chips later this year, the ChatGPT make has announced. The effort is reportedly being led by executives with previous experience on Google’s TPU program.

The development reflects a wider trend among AI companies and cloud providers, which are investing in custom silicon to secure supply and potentially improve the economics of running AI workloads.

Google expands AI model distribution

The reported chip arrangement follows a separate expansion of the companies’ commercial relationship.

Last week, OpenAI and Google announced that OpenAI’s frontier models, including GPT-6 Astra, GPT-6.1 Sol and GPT-6 Luna, along with Codex agentic workflows, would become available through Google Cloud’s Model Garden.

Enterprise customers will be able to access the models through Google Cloud Marketplace and apply existing cloud spending commitments. General availability is expected in the coming weeks.

Microsoft remains OpenAI’s primary cloud partner, but the Google arrangement gives both companies another route to reach enterprise customers.

Oracle also announced Tuesday that Google TPUs will become available through its cloud platform starting in 2027, expanding the chips’ distribution beyond Google Cloud.

Alphabet earnings in focus

The developments come as Alphabet prepares to report third-quarter results after the market close on Wednesday.

Investors will be watching Google Cloud growth, AI infrastructure spending and management commentary on demand for its custom chips.

Analysts expect Alphabet to report revenue of $128.18 billion, up from $102.35 billion a year earlier. The company has beaten revenue estimates for 14 consecutive quarters.

The reported OpenAI deal could add to investor interest in Google’s AI infrastructure business as technology companies seek more computing capacity while managing the cost of the AI race.

The post OpenAI looks beyond Nvidia, plans to buy Google’s AI chips: report appeared first on Invezz

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

Business Insider

Robinhood’s prediction-market revenue surged more than sixfold to $173 million in the third quarter, exceeding its cryptocurrency trading revenue as cryptocurrency sales fell 55%...

Business Insider

Netflix (NFLX) reportedly wanted seven years of exclusive film and TV rights to Microsoft’s (MSFT) Xbox game library, which includes popular titles such as...

Business Insider

Nvidia (NVDA) is putting $3 billion into Meta Platforms (META). But the size of that check may be less important than what it says...

Business Insider

In late October, Lockheed Martin (LMT) and the U.S. Department of Defense agreed on a 10-year framework deal for the F-35 fighter jet program....

Business Insider

As mortgage rates remain stubbornly high, real estate technology company Zillow issues a warning for homebuyers about the hidden costs of homeownership. “Buying a...

Business Insider

Five months into his term as Federal Reserve chairman, Kevin Warsh has kicked off his promised “regime change” at the U.S. central bank by...

You May Also Like

Investor Strategy

The consensus story about Samsung Electronics is that you buy it for the memory supercycle. That story is incomplete, and the part everyone is...

Investor Strategy

SK Hynix is not trading at seven times earnings, whatever the screen says. The Korean memory maker closed at ₩1,678,000 on 25 August 2026,...

Business Insider

Every country that builds things eventually faces the same question about a cheaper foreign rival, and there are only two honest answers to it....

Investor Strategy

Almost every summary of X-Energy you will read says the company reached the public market through the Ares Acquisition Corporation II blank-cheque vehicle. It...

Disclaimer: Respect Investment.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2026 respectinvestment.com | All Rights Reserved