OpenAI is knocking on Google Cloud’s door for more GPUs for its AI models. A deal that is remarkable for several reasons.
OpenAI has placed Google on its official list of hardware suppliers. This means concretely that Google is providing GPUs to OpenAI for training LLM models. According to sources from Reuters, an agreement was already reached last month, but this had not been publicly announced until now. Whether the collaboration is limited to chips or also includes cloud capacity remains unclear.
Necessity Knows No Law
The fact that OpenAI is even seeking rapprochement with Google is remarkable in itself. In the AI race, OpenAI and Google are each other’s biggest rivals. But sometimes necessity simply transcends your friendships and rivalries.
OpenAI doesn’t have its own data centers or chips and therefore needs to partner with a cloud provider. The company is in a constant search for cloud capacity and GPUs to train its increasingly extensive models and keep them active around the clock. Microsoft won’t be laughing about the flirtation between OpenAI and Google.
Polygamy
In this love triangle, Microsoft feels like the betrayed partner. Microsoft has long been the exclusive cloud partner for OpenAI and wants to further expand that collaboration. It reportedly even tried to actively block a rapprochement between OpenAI and Google, according to Reuters.
It’s no secret that Microsoft is gradually running out of space in its data centers to continue supporting OpenAI’s growth as an exclusive partner. This opened the doors for an open relationship, although Microsoft would have preferred to pair OpenAI with loyal companion Oracle. However, OpenAI has set its sights on Google, which is a thorn in Microsoft’s side given its troubled relationship with Google.
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For Google Cloud, on the other hand, burying the hatchet won’t be a problem. With OpenAI, it’s landing a big fish. Google wants to distinguish itself in the AI market by, among other things, opening up its homemade chips to external parties. An offer that has already won over other major players like Apple and Anthropic. OpenAI and Google are also partners in the prestigious Stargate project of the US government.
This article originally appeared on June 13 and received an update with the latest information.