US: OpenAI’s New Cloud Agreement with Google

In a move that surprised many, OpenAI, the company behind ChatGPT, has decided to team up with Google to use its cloud services. This is a major step because OpenAI and Google are often seen as rivals in the race to lead the world of artificial intelligence. The deal was quietly finalized in May 2025 after several months of discussions. Until now, OpenAI mainly used Microsoft’s cloud services, but it’s now branching out to make sure it doesn’t rely too heavily on just one company.

This new decision shows just how much computing power is needed to build and run AI models. AI tools like ChatGPT don’t work without strong machines behind the scenes. These machines help train the models and also allow people to use them smoothly. OpenAI has been trying to find new ways to handle this heavy need for computing. By working with Google, OpenAI will now have more power to train and run its AI models faster and better.

For Google, this deal is a win too. Its cloud division has been growing, and this partnership adds one of the biggest names in AI to its list of customers. Google is sharing its special AI chips—called TPUs—with more companies now, and OpenAI is the latest to join the group. Before this, Google mostly used these chips for its own work. Now, they are opening up more and more to outside companies to grow their cloud business.

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This also shows that the race in AI isn’t always about beating each other. Sometimes, even strong rivals can work together if it helps both of them. OpenAI gets access to extra computing power, and Google gets a big customer that will help grow its cloud business.

Over the past few years, OpenAI has been very busy. Since the end of 2022, when ChatGPT became very popular, the company has faced a massive increase in the number of people using its tools. To keep up, it has made many big deals with companies that help build and run computer systems. It partnered with SoftBank and Oracle for a project called Stargate, which could cost as much as $500 billion. This huge project is all about building the right places and tools to support AI.

Not only that, OpenAI has signed contracts worth billions of dollars with another company, CoreWeave, for more computing power. The company is also designing its own special computer chip that it hopes to use soon. This chip would allow OpenAI to rely less on other companies like Nvidia, which make the chips used in most computers running AI today.

The new deal with Google is part of OpenAI’s larger plan to be more independent. For a long time, Microsoft was the only company providing cloud support to OpenAI. That meant OpenAI had to rely completely on Microsoft to run its services. But now, with Google joining in, OpenAI has more freedom and flexibility. It can spread its work between more partners, which is safer and more practical for a fast-growing company.

Even though Google and OpenAI are both in the AI business, they found a way to work together here. Google is still working on its own AI systems, but it understands the value of letting others use its computing tools. OpenAI gets the support it needs without being locked into just one partner. This deal might also help OpenAI build a better relationship with other tech companies in the future.

At the same time, OpenAI and Microsoft are still talking about their current deal. Microsoft gave OpenAI a lot of money in the past and also has a say in some of its decisions. Right now, they are trying to update the details of their partnership, including how much of OpenAI Microsoft will own going forward.

OpenAI’s yearly revenue has reached $10 billion as of June 2025, showing just how big it has become. More and more people are using ChatGPT and other AI tools in their daily lives, and that number keeps growing. This success brings new challenges. The company must make sure it has the right systems to handle the pressure and give users the best service possible.

That’s why this deal with Google matters so much. It’s not just about getting help from another cloud provider. It’s about building a stronger foundation for the future. OpenAI is growing fast and doesn’t want to depend too much on anyone. It wants to stand on its own, with the support of many strong partners.

This is also a smart move by Google. By working with a well-known AI company like OpenAI, it proves that its cloud systems are ready to handle the world’s biggest technology challenges. Google has been opening up its hardware and services to other top companies like Apple and Anthropic, and now it adds OpenAI to that list.

In the world of AI, things are moving very quickly. Companies must keep adapting to stay ahead. They need more power, better tools, and flexible support. OpenAI knows this, and that’s why it is making deals with many different companies to make sure it has what it needs. Whether it’s new computer chips, giant data centers, or new cloud partners, the company is planning for a big future.

So, even though OpenAI and Google are still competitors in many ways, this deal shows that sometimes working together can be better than going it alone. As AI becomes more important in our everyday lives, the companies behind it must find smarter ways to build, grow, and support their tools. OpenAI’s partnership with Google is just one example of how that future is being shaped.

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