OpenAI Eyes Google's AI Chips as It Looks Beyond Nvidia: Report
OpenAI intends to acquire artificial intelligence chips from Google, as reported by The Information, as the creator of ChatGPT aims to expand its computing resources for its AI models.
The suggested agreement would enhance the commercial relationship between the two firms, even though they compete in artificial intelligence products and search. The financial details and other specifics of the possible transaction have not been revealed.
The progression comes after a sequence of business agreements between the firms. On October 21, OpenAI revealed that its advanced AI models would be accessible via Google Cloud, deepening their partnership beyond competing in the AI industry.
OpenAI is already significantly dependent on Nvidia's graphics processing units (GPUs) for training and executing its AI models. According to Reuters, the company began leasing Google's AI chips, called tensor processing units (TPUs), in 2025.
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Over a decade ago, Google created TPUs, originally employing them to enhance its search engine and boost operational efficiency. The processors have emerged as an alternative to Nvidia's GPUs for AI tasks, as companies seek various methods to increase computing power and control expenses.
This year, Google started providing TPUs directly to chosen customers.
Demand has been bolstered by partnerships with firms like Anthropic, a rival of OpenAI. Google anticipates that a minor share of revenue from its TPU sales contracts will be acknowledged by the end of 2026, with the majority of revenue projected to be reported in 2027, as stated by Alphabet Chief Financial Officer Anat Ashkenazi earlier.
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The intended acquisition arises as OpenAI seeks to broaden the hardware backing its AI functions. In June, the firm revealed a tailored AI chip created in collaboration with Broadcom and announced its plan to launch the processor by the conclusion of 2026 as a component of a multi-generation chip initiative.
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In the meantime, leading tech firms are investing significant amounts into AI infrastructure. Amazon, Microsoft, and Alphabet are projected to invest nearly $600 billion together by 2026, as investors evaluate if the increasing funding in AI will yield significant returns.