Beyond Nvidia: OpenAI reportedly plans to buy Google AI chips ahead of Alphabet results
OpenAI plans to buy Google's TPU chips, a media report says, in a signal to Nvidia. Alphabet reports quarterly results on Wednesday, while Oracle plans to offer TPUs from 2027.
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ChatGPT maker OpenAI plans to buy artificial intelligence chips from Google, The Information reported, citing a person familiar with the matter. The chips are Google's in-house tensor processing units (TPUs). The size and terms of any deal were not disclosed. According to The Information, work to adapt OpenAI's models to Google's chips is at an early stage. In a job posting, OpenAI is seeking engineers to optimize its frontier models on TPUs.
OpenAI has been one of Nvidia's biggest customers, and the move is seen as an effort to diversify. OpenAI began renting Google chips last year, according to The Information. Google rents TPUs to customers including OpenAI rival Anthropic and Apple. Alphabet shares rose about 1% in overnight trading on Tuesday.
On Tuesday, Oracle said it would become the first major cloud provider outside Google to offer Google's TPUs, with availability in Oracle's cloud from 2027. Alphabet reports third-quarter results after the U.S. market close on Wednesday.