OpenAI has announced a new collaboration with Google (GOOGL, Financial) to utilize its cloud infrastructure for running ChatGPT. This move aligns with OpenAI's growing need for computational resources, as the company initially relied solely on Microsoft (MSFT) for cloud services. As OpenAI's business expands, it requires additional computing power, leading to a shift in its partnerships. Microsoft had previously categorized OpenAI as a competitor, with both companies offering AI tools and subscription services to developers and enterprises.
OpenAI has now added Google to its list of cloud service providers, indicating that ChatGPT and its API will operate on Google's cloud platform, alongside resources from Microsoft, CoreWeave, and Oracle (ORCL). This development is a significant boost for Google, whose cloud business is smaller and newer compared to Amazon (AMZN) and Microsoft. Google is also collaborating with Anthropic, a company founded by former OpenAI executives, for cloud services.
In recent developments, Oracle announced its partnership with Microsoft and OpenAI to extend Microsoft Azure AI capabilities to Oracle Cloud Infrastructure. Additionally, OpenAI signed a five-year, $12 billion cloud service agreement with CoreWeave in March. Microsoft retains exclusive rights to OpenAI's API usage and has agreed to offer priority purchasing for additional computing resources when needed.
