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3mo ago

OpenAI Strikes Deal With Google Cloud to Boost AI Compute Capacity

Finalized in May, the partnership cuts OpenAI’s reliance on Microsoft at a time when its annual revenue run rate has reached $10 billion.

A Google logo is seen at a company research facility in Mountain View, California, U.S., May 13, 2025. REUTERS/Carlos Barria/File Photo
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OpenAI logo is seen in this illustration taken May 20, 2024. REUTERS/Dado Ruvic/Illustration/File Photo

Overview

  • OpenAI finalized a deal in May to tap Google Cloud services for additional computing capacity, marking its first major infrastructure partnership with a direct AI rival.
  • Under the agreement, Google Cloud will supply compute power for training and running models such as ChatGPT to address surging demand.
  • The move diversifies OpenAI’s infrastructure beyond Microsoft Azure after the companies ended their exclusive data center arrangement in January.
  • OpenAI’s annualized revenue run rate climbed to $10 billion in June amid booming adoption of its AI offerings.
  • OpenAI and Microsoft are negotiating revised terms for their multibillion-dollar investment pact, including adjustments to Microsoft’s future equity stake.