OpenAI Partners with Google Cloud in Shocking Twist Amid AI Rivalry

According to a media source, OpenAI intends to integrate Alphabet's Google Cloud service to accommodate its expanding processing capacity requirements. This is an unexpected partnership between two well-known rivals in the artificial intelligence space.

As per the report, the agreement was concluded in May after being discussed for several months. It highlights how the enormous computing requirements for training and implementing AI models are changing the competitive landscape in the field and is OpenAI's most recent attempt to expand its compute sources outside of its primary backer, Microsoft, including the well-known Stargate data centre project.

The report further claims that it is a victory for Google's cloud division, which will provide more processing power to OpenAI's current infrastructure for training and executing its AI models.

OpenAI’s ChatGPT Bigger Threat to Google Search

Additionally, Google executives recently stated that the AI competition may not be winner-take-all, indicating that OpenAI's ChatGPT represents the most danger to Google's hegemonic search business in years.

OpenAI has had to deal with the growing demand for computing capacity, or compute as it is known in the industry, for both training huge language models and executing inference, which entails processing data so that users may utilise these models, ever since ChatGPT made its debut in late 2022.

In light of the rapidly growing use of AI, OpenAI announced on 9 June that its annualised revenue run rate increased to $10 billion as of June, setting the business up to meet its full-year goal. Earlier this year, OpenAI inked billion-dollar contracts with CoreWeave for additional compute and joined forces with SoftBank and Oracle on the $500 billion Stargate infrastructure development.

As per another report published by a renowned media house, it is on schedule to complete the design of its first internal processor this year, which might lessen its reliance on outside hardware suppliers.

OpenAI Reducing Dependency on Microsoft

The collaboration with Google is the most recent of OpenAI's various strategies to lessen its reliance on Microsoft, whose Azure cloud service was the sole supplier of data centre infrastructure for ChatGPT until January.

 After months of discussions, Google and OpenAI were unable to finalise a contract because of OpenAI's exclusivity with Microsoft. Additionally, Microsoft and OpenAI are negotiating changes to the terms of their multibillion-dollar investment, including Microsoft's future ownership position in OpenAI.

The agreement for Google coincides with the tech giant's efforts to make its proprietary technology, known as tensor processing units, or TPUs, more widely available to the public. Previously, these chips were only used internally.

As a result, Google was able to attract clients from big tech giant Apple as well as startups like Safe Superintelligence and Anthropic, two OpenAI rivals founded by former OpenAI executives.

The fact that Google has added OpenAI to its list of clients demonstrates how the internet behemoth has leveraged its proprietary AI hardware and software to boost the expansion of its cloud business.