OpenAI will reportedly start using Google's cloud servers
OpenAI has inked a deal with Google to begin using the latter's cloud service to meet its growing needs for increased computing capacity, according to a report by Reuters. 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 data center provider until January, after OpenAI CEO Sam Altman blamed the lack of compute capacity for the delay of several products. The company made a deal in March with CoreWeave to provide increased cloud compute capacity. 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 revise the equity stake Microsoft holds in OpenAI. However, this is certainly a win for Google Cloud. ChatGPT poses the biggest threat to Google's search business in years, 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 CONSTRAINTSNot just from permitting delays, but from infrastructure bottlenecks. And when AI buildouts stall, there’s usually one common denominator: not enough $NVDA-powered systems
OpenAI has inked a deal with Google to begin using the latter's cloud service to meet its growing needs for increased computing capacity, according to a report by Reuters. 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 data center provider until January, after OpenAI CEO Sam Altman blamed the lack of compute capacity for the delay of several products. The company made a deal in March with CoreWeave to provide increased cloud compute capacity. 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 revise the equity stake Microsoft holds in OpenAI.
However, this is certainly a win for Google Cloud. ChatGPT poses the biggest threat to Google's search business in years, 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
