OpenAI taps Google in unprecedented cloud deal despite AI rivalry

OpenAI plans to add Alphabet’s Google cloud service to meet its growing needs for computing capacity, three sources told Reuters, marking a surprising collaboration between two prominent competitors in the artificial intelligence sector.

The deal, which has been under discussion for a few months, was finalised in May, one of the sources added. It underscores how massive computing demands to train and deploy AI models are reshaping the competitive dynamics in AI, and marks OpenAI’s latest move to diversify its compute sources beyond its major supporter Microsoft, including its high-profile Stargate data center project.