OpenAI plans to buy artificial intelligence (AI) chips from Google, The Information reported on Tuesday, citing a person familiar with the matter. The reported move comes as technology companies expand their computing capacity to meet surging demand for AI services.
The potential deal would strengthen commercial ties between OpenAI and Google parent Alphabet, despite their competition in AI products and search. Last week, OpenAI announced plans to make its frontier AI models available through Google Cloud.
Neither company disclosed financial terms or further details of the reported chip purchase. Google did not immediately respond to a Reuters request for comment outside regular business hours, while OpenAI declined to comment.
Tech Giants Increase AI Infrastructure Spending
Amazon, Microsoft and Alphabet plan to spend as much as $600 billion combined this year on AI infrastructure. The massive investment comes as investors increasingly question when spending on AI technology will generate meaningful financial returns.
Nvidia Invests $3 Billion in Meta as AI Partnership Expands
OpenAI already ranks among the largest buyers of Nvidia graphics processing units (GPUs), which it uses to train and deploy AI models. Reuters reported in June 2025 that the ChatGPT developer had begun renting Google’s AI chips.
Google’s TPUs Gain Ground as an Alternative
Google’s Tensor Processing Units (TPUs) have gained traction as an alternative to Nvidia’s market-leading AI chips. Companies are exploring these processors as they seek potentially more cost-effective options for running AI workloads.
Google began selling TPUs directly to some customers this year. Deals with customers, including AI company Anthropic, have helped drive demand for the chips.
Alphabet expects to recognise a small percentage of revenue from TPU sales agreements by the end of this year, with most of the revenue expected to be recognised in 2027, Chief Financial Officer Anat Ashkenazi previously said.
Investors will also examine Alphabet’s quarterly results, scheduled for release later on Wednesday, for signs that its substantial AI investments continue to support growth in its cloud business.
OpenAI Develops Its Own AI Chip
OpenAI is also pursuing its own chip development programme. In June, the company unveiled its first custom AI chip, designed in collaboration with Broadcom, and said it planned to deploy the processor by the end of this year.
The initiative forms part of a multi-generation chip programme that could help OpenAI diversify its computing infrastructure as demand for its AI models grows.
