OpenAI Partners With Google To Expand Cloud Infrastructure

OpenAI said on Wednesday that it expects to use Google’s cloud infrastructure for its AI models and has added the company to its list of suppliers to meet growing demand for computing capacity. The move is seen as part of OpenAI’s broader strategy to reduce its reliance on Microsoft.

According to Reuters, the deal has been under discussion for months—it was first reported in June. The new update showing the partnership has finally been added to OpenAI’s website, in its OpenAI Sub-processor List, updated on July 16.

A source familiar with the matter explained that the negotiation was extended due to OpenAI’s business relationship with Microsoft. Both companies have been under a difficult negotiation process this year to adjust their multi-billion-dollar partnership.

OpenAI relies on Oracle, CoreWeave, and Microsoft as cloud infrastructure suppliers as well. The AI giant also partnered with Softbank and Oracle for the Stargate Project, a joint venture—backed by around $500 billion—to build AI infrastructure in the United States.

The new partnership with Google is part of another of OpenAI’s strategies to reduce its dependency on Microsoft and expand its services.

According to CNBC, OpenAI has been needing more computing power as its services evolve and the company grows. Google—which has built alliances with other AI companies such as Anthorpic—is also benefiting from this partnership. Compared to Amazon and Microsoft, Google’s cloud unit is smaller and younger.

As stated by OpenAI, Google will run its infrastructure in the United States, Norway, the United Kingdom, the Netherlands, and Japan, providing services for its API, ChatGPT Enterprise, ChatGPT Edu, and ChatGPT Team.

This week, Google also announced a major investment in AI infrastructure and energy. The tech giant plans to invest $25 billion in data centers and AI infrastructure, and signed a $3 billion deal to modernize two hydropower plants in Pennsylvania.