Report: Google and OpenAI reach cloud deal despite ChatGPT vs Gemini rivalry

OpenAI is reportedly tapping Google’s cloud services to power ChatGPT and other services as it seeks to diversify from Microsoft.

As reported by Reuters, OpenAI will be leveraging Google Cloud in its growing need for compute capacity. The deal comes as a shock, really, as Google’s Gemini is one of OpenAI’s biggest competitors, while OpenAI has become a major competitor to Google Search.

This deal has reportedly been under discussion for some time, but was finalized last month. Apparently, the deal was “previously blocked from signing a deal due to OpenAI’s lock-in with Microsoft.”

The report says:

OpenAI plans to add Alphabet’s Google cloud service to meet its growing needs for computing capacity, three sources told Reuters, marking a surprising collaboration between two prominent competitors in the artificial intelligence sector.

The deal, which has been under discussion for a few months, was finalized in May, one of the sources added. It underscores how massive computing demands to train and deploy AI models are reshaping the competitive dynamics in AI, and marks OpenAI’s latest move to diversify its compute sources beyond its major supporter Microsoft, including its high-profile Stargate data center project.

It’s unclear exactly what the scope of what Google’s cloud services will be powering for OpenAI, but it’s a major deal for both companies.

More on AI:

• Google starts testing ‘Search Live’ in AI Mode
• ChatGPT Search is officially here to challenge Google’s throne
• Gemini app Pro subscribers now get three ‘Veo 3 Fast’ videos per day

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