June 10 - Shares of Alphabet (GOOGL, Financial) rose about 3% on Tuesday morning after Reuters reported that OpenAI has entered a cloud services deal with Alphabet's Google to support the growing demand for computing power tied to its AI model development.
The agreement, finalized in May after several months of discussions, will allow OpenAI to access Google Cloud infrastructure for training its generative AI systems, the report said, citing unnamed sources familiar with the matter.
This move comes as Google Cloud continues to compete with Amazon Web Services (AMZN, Financial) and Microsoft Azure (MSFT) in the cloud infrastructure market. Microsoft, which holds a significant investment in OpenAI and supplies its primary cloud services, did not respond to requests for comment, Reuters noted.
OpenAI and Google have not issued public statements on the deal.
In a separate update Monday, OpenAI said it has reached a $10 billion annualized revenue run rate, underscoring strong commercial momentum as enterprise AI adoption expands.
