OpenAI Teams with Google Cloud for AI Computing Boost

Published Date : 11/06/2025 

OpenAI and Google have finalized a deal to use Google’s cloud service for extra computing capacity, marking a significant collaboration between two leading AI competitors. 

OpenAI and Google have reportedly finalized a deal in which OpenAI will tap into Google’s cloud service for additional computing capacity to train and run its artificial intelligence (AI) models. This collaboration comes after months of negotiations and follows the end of an agreement that made Microsoft OpenAI’s exclusive data center infrastructure provider in January.

The companies had been discussing the deal for several months but were unable to sign it until the agreement with Microsoft expired. According to a report by Reuters, the deal was finalized in May. When contacted by PYMNTS, Google declined to comment on the report, and OpenAI did not immediately respond to a request for comment.

This partnership marks a significant collaboration between two prominent AI competitors, as OpenAI’s ChatGPT has the potential to challenge Google’s search business. The deal also signals a diversification of compute sources by OpenAI, which earlier this year partnered with SoftBank and Oracle on the Stargate infrastructure program and with CoreWeave for additional compute power.

Microsoft announced in a January 21 blog post that it would no longer be OpenAI’s exclusive cloud provider for its AI models. Instead, Microsoft will have the right of first refusal to host OpenAI’s workloads in Azure. Microsoft became OpenAI’s exclusive cloud provider in a 2019 agreement after investing $1 billion in the AI startup. Since then, Microsoft has reportedly invested a total of nearly $14 billion in OpenAI.

For Google, the deal with OpenAI is the latest in a series of strategic partnerships that have been facilitated by the company’s expanding availability of its in-house chips known as tensor processing units. In recent deals, Google’s cloud unit has also gained the business of Apple, Anthropic, and Safe Superintelligence.

AI data centers are crucial because traditional data centers and power grids are struggling to accommodate the intense computational power, data storage, and energy required by AI. As Deborah Perry Piscione, co-founder and CEO of Work3 Institute, an AI and Web3 advisory firm, explained, “AI data centers are fundamentally different because they require specialized hardware and infrastructure to handle the massive parallel processing needed for AI workloads.”

This collaboration between OpenAI and Google highlights the growing importance of cloud services and specialized hardware in the rapidly evolving field of artificial intelligence. It also underscores the competitive landscape in the AI industry, where companies are continually seeking new partnerships and technologies to stay ahead. 

Frequently Asked Questions (FAQS): 

Q: What is the main reason for OpenAI and Google's partnership?

A: The main reason for the partnership is to provide OpenAI with additional computing capacity from Google’s cloud service, which is essential for training and running AI models.

Q: Why did the deal with Microsoft end?

A: The deal with Microsoft ended in January, allowing OpenAI to seek additional compute sources and diversify its infrastructure providers.

Q: What is the significance of Google's tensor processing units?

A: Google's tensor processing units (TPUs) are specialized chips that significantly enhance the performance and efficiency of AI workloads, making them a valuable asset in the cloud market.

Q: How does this partnership affect the AI industry?

A: This partnership highlights the competitive landscape in the AI industry, where companies are continually seeking new partnerships and technologies to stay ahead and meet the growing demands of AI workloads.

Q: What is the role of specialized data centers in AI?

A: Specialized AI data centers are crucial because they provide the necessary computational power, data storage, and energy required to handle the massive parallel processing needed for AI workloads. 

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