OpenAI is said to be in the process of partnering with Google Cloud to meet its growing computational needs. Reports indicate that discussions between the AI company based in San Francisco and the tech giant from Mountain View have been ongoing for several months. This collaboration could see a portion of the server demands for ChatGPT and Sora transitioned to Google’s infrastructure. While specifics regarding the financial aspects of this agreement remain undisclosed, sources suggest that OpenAI will receive a substantial compensation package.
Google Cloud to Reportedly Carry OpenAI’s Compute Burden
A report by Reuters reveals that OpenAI has secured a deal allowing it to utilize Google Cloud’s servers to support the computational needs of ChatGPT. The article cites three unnamed sources, noting that the increased demand for additional cloud servers has driven OpenAI to seek this partnership.
Details of the agreement are limited, but it is understood that the two companies engaged in discussions for several months prior to finalizing the deal in May. Financial terms have not been disclosed.
The collaboration between OpenAI and Google is particularly noteworthy, given that both firms are vying for dominance in the AI sector. They have been actively launching new large language models, enhancing the functionality of their chatbots, and exploring innovative ways to connect with users. While Google integrates its Gemini technology into a range of its products, OpenAI has been pursuing partnerships with original equipment manufacturers (OEMs).
Interestingly, shortly after Google released the enhanced Gemini 2.5 Pro model, OpenAI unveiled its o3-pro model. Following Google’s announcement of reduced application programming interface (API) prices for its latest AI models, OpenAI responded by announcing an 80 percent price reduction on its o3 model.
Even amidst this competitive landscape, OpenAI faces pressing challenges in scaling its computational resources. After introducing the image generation feature powered by GPT-4o, CEO Sam Altman mentioned that the company’s GPUs were “melting.” Additionally, ChatGPT experienced significant downtime on Tuesday, leading to a notable outage impacting users.
