OpenAI plans to buy Google's AI chips
What's the story
OpenAI plans to buy Google's artificial intelligence (AI) chips, The Information reported on Tuesday. The move would strengthen the partnership between OpenAI and Google, both of whom are already rivals in the AI product and search space. However, the report did not reveal any financial details or other specifics about the potential deal.
Chip acquisition
OpenAI's chip procurement strategy shifts
OpenAI is one of the biggest buyers of NVIDIA's graphics processing units (GPUs), which are used to train and deploy AI models.
In June 2025, Reuters reported that the ChatGPT creator had started renting Google's AI chips.
This new development hints at a possible shift in OpenAI's chip procurement strategy as it looks to expand its capabilities in the rapidly growing field of artificial intelligence.
Market shift
Google's TPUs challenge NVIDIA's dominance
Google's Tensor Processing Units (TPUs) have emerged as a popular alternative to NVIDIA's dominant AI chips.
The shift comes as companies look for more affordable options and chips that are better suited for running AI models.
Earlier this year, Google started selling TPUs directly to select customers, further cementing its position in the competitive AI chip market.
Revenue recognition
Alphabet's cloud business growth hinges on AI investment
Deals with customers such as rival Anthropic have increased demand for Google's TPUs.
Alphabet expects to start recognizing a small portion of revenue from TPU sales agreements by the end of this year, with most expected to be recognized in 2027.
The tech giant will announce its quarterly results later today, with investors hoping that its heavy investment in AI is continuing to boost growth in its cloud business.