OpenAI Strikes Google Cloud Deal in Push Beyond Microsoft | PYMNTS.com

The deal will make OpenAI’s leading AI models and Codex software development tools available through Google Cloud’s Model Garden and Marketplace, according to a CNBC report published Wednesday.

This is another step in OpenAI’s effort to reach business customers through several cloud providers instead of relying mainly on its longtime partner, Microsoft. OpenAI has also made its technology available through Amazon Web Services. This means businesses can now access its technology through the three largest U.S. cloud platforms.

The partnership stands out because Google and OpenAI compete directly in the fast-growing market for generative AI. Google’s Gemini models compete with OpenAI’s products in consumer apps, software development and business services.

Even though the companies are rivals, the deal shows how important it is for businesses to access different AI systems through the cloud services they already use.

Businesses Get More Choices

Under the deal, Google Cloud customers will be able to buy OpenAI models through Google’s existing business services, according to CNBC and announcements from both companies.

Businesses that have already agreed to spend a certain amount on Google Cloud will be able to use that spending commitment to pay for OpenAI products. This could make buying the products easier and reduce the need for separate agreements with different vendors.

According to Google Cloud’s October 21 announcement, the first models offered will be GPT-Astra, GPT-6.1 Sol and GPT-6 Luna. They are designed for different business needs, including difficult reasoning tasks, software engineering and high-volume tasks that need to be completed at a lower cost.

Google said the models are starting to become available in a private preview for selected business customers. Wider access is planned for the coming weeks.

OpenAI’s Codex tools will also be supported, allowing developers to connect their software development work to Google’s cloud systems.

The companies plan to add access to more Google development products, including Google Antigravity and Gemini Agent.

For businesses, this connection could make it easier to compare AI models from different developers without moving apps and sensitive information between separate cloud systems.

OpenAI’s Relationship With Microsoft Changes

The Google deal shows how OpenAI’s relationship with Microsoft is changing. Microsoft provided important financial support and computing power when the company behind ChatGPT was first growing.

Microsoft’s Azure cloud platform has been a major way for customers to access OpenAI’s technology. However, changes to the companies’ business agreements have allowed OpenAI to seek additional partners.

The agreement also comes as OpenAI faces growing attention over AI security risks. Related: California Subpoenas OpenAI as Scrutiny of AI Cybersecurity Risks Grows

According to CNBC, the move to Google Cloud follows an earlier decision by OpenAI to make its technology available through Amazon’s cloud services.

These changes show that OpenAI wants to reach business customers no matter which cloud provider they prefer to use.

The Google deal does not end OpenAI’s relationship with Microsoft. OpenAI said in its announcement that Microsoft remains its main cloud partner.

Still, adding Google gives OpenAI another way to sell its technology as competition among AI developers grows stronger.

Google Strengthens Its Role as an AI Platform

The deal also supports Google’s efforts to make its cloud business a place where companies can use AI systems from different developers.

Google Cloud already offers its own Gemini technology along with AI models made by other companies. Adding OpenAI’s products gives businesses and software developers more tools to choose from.

According to Google’s announcement, its platform now provides access to leading AI models from Google, OpenAI and Anthropic, as well as a wider range of other models.

This approach could help Google attract businesses that want the freedom to choose the AI systems that best fit their needs.

Instead of choosing just one AI developer, companies can compare models based on how well they work, how much they cost to run, their security features and how difficult their tasks are.

Google is also highlighting protections for business data, including controls over who can access information, tools for checking and recording activity, and systems designed for organizations that handle sensitive information.

These features are especially important for businesses in industries with strict rules, where meeting legal requirements and managing data properly can determine whether a new AI system can be widely used.

Cloud Providers Play a Bigger Role in AI Competition

The partnership shows how the AI industry’s business model is changing. Major cloud providers are increasingly becoming platforms that help customers access technology from competing AI developers.

For companies such as OpenAI, making their products available through more cloud platforms helps them reach customers who have already invested heavily in existing cloud systems.

For Google, Microsoft and Amazon, hosting advanced AI models can help them attract and keep business customers, even when their competitors have developed those models.

The deal also creates a challenge for OpenAI. Making its technology available in more places helps more customers use it, but it also puts its models next to competing products that customers can compare directly.

As a result, how well models perform, how much they cost, how reliable they are and how easily they work with existing business systems are likely to matter more when companies choose AI products.

The Google partnership gives OpenAI another way to reach business customers. It also shows how AI developers and cloud companies are becoming more dependent on one another to make AI technology available.

Source: CNBC