OpenAI has inked a deal with Google to begin using the latter’s cloud service to meet its growing needs for increased computing capacity, . This is something of a surprise, given that Google and OpenAI are rivals in the AI space.
The terms of the deal remain unknown, but reporting indicates it has been in the negotiation phase for the past several months. This marks OpenAI’s latest move to diversify its compute sources away from Microsoft Azure.
Microsoft had been OpenAI’s exclusive , after OpenAI CEO Sam Altman for the delay of several products. The company made a deal in March with CoreWeave . That deal was worth nearly $12 billion.
Microsoft Azure may no longer be the exclusive cloud provider for OpenAI, but it’s not as if the two companies have parted ways. OpenAI still relies heavily on Azure and the corporations are currently in negotiations to revise the terms of their partnership, which will likely .
However, this is certainly a win for Google Cloud. ChatGPT poses the biggest threat to , and this deal could indicate a softening between the two companies. In any event, it’ll certainly bring a whole lot of money into Google Cloud’s coffers. The platform made $43 billion last year and accounted for 12 percent of parent company Alphabet’s overall revenue. The addition of OpenAI to its customer portfolio will likely extend those numbers dramatically.
$GOOG CEO ADMITS GOOGLE CLOUD IS RUNNING INTO REAL CONSTRAINTS
Not just from permitting delays, but from infrastructure bottlenecks. And when AI buildouts stall, there’s usually one common denominator: not enough $NVDA-powered systems 👀pic.twitter.com/0COPjZY5Mx
— Shay Boloor (@StockSavvyShay) May 20, 2025
There is an elephant in the room. Google has famously for its cloud services, and this was before bringing on OpenAI. Simply put, . Will OpenAI get priority access over pre-existing customers? Tech Reader has reached out to Google and will update this story if we hear back.
To that end, OpenAI is certainly thriving. The company recently announced that the current adoption rate of its software will lead to as of June. It told investors that it has a target revenue goal of around $12 billion for the year, which it should easily meet with new subscribers.
