OpenAI Reportedly Plans to Purchase Google AI Chips as Demand for Computing Infrastructure Grows
OpenAI (NASDAQ:OAI) plans to buy artificial intelligence (AI) chips made by Google parent company Alphabet (NASDAQ:GOOG), according to a report published Tuesday by The Information. The report cited a person familiar with the matter. If the deal goes ahead, it would strengthen the business relationship between the two companies as demand grows for the computing power needed to develop and run AI.
The reported plan comes as major technology companies spend large amounts of money on data centres, processors and other equipment needed to build and run advanced AI models.
The report did not share the price or other details of the planned purchases. Google did not immediately respond to a request for comment from Reuters outside normal business hours, while OpenAI declined to comment.
OpenAI and Google Expand Their Business Relationship
The possible chip purchases would be another step in the relationship between OpenAI and Google. The two companies compete in AI products and internet search.
Even though they compete, the companies have made more business deals involving computing equipment and AI services.
Last week, OpenAI announced that its most advanced AI models would become available through Google Cloud.
This deal gives customers another way to use OpenAI's advanced models and adds more AI services to Google's cloud platform.
The reported plan to buy chips designed by Google would extend their relationship to the direct purchase of computer chips.
However, neither company has confirmed the planned deal. The report did not say how many chips OpenAI might buy, how much they would cost or when they would arrive.
Google's TPUs Offer an Alternative to Nvidia Chips
Google's Tensor Processing Units, known as TPUs, are getting more attention as an alternative to the graphics processing units, or GPUs, made by Nvidia.
TPUs are special computer chips designed to handle the heavy computing work needed for AI. This includes training AI models and running them to produce answers or other results.
OpenAI is already one of the biggest buyers of Nvidia GPUs. It uses these chips to develop and run its AI systems.
The company has also used Google's chip technology before.
Reuters reported in June 2025 that OpenAI had started renting Google's AI chips. This created an earlier business relationship involving the processors.
The latest report suggests that OpenAI is considering buying Google's chips directly instead of relying only on rented computing power.
Google began selling TPUs directly to selected customers this year as demand grew for alternatives to Nvidia's chips.
AI Companies Seek More Computing Power
The reported deal comes as companies invest heavily in the equipment and systems needed to develop AI.
Amazon, Microsoft and Alphabet expect to spend as much as $600 billion combined this year on infrastructure related to AI.
This spending includes data centres, computing equipment and systems needed to run increasingly complex AI models.
As companies spend more money, investors are paying closer attention to whether these investments will bring in enough money to justify their cost.
AI developers are also looking at different types of chips as they try to control computing costs and make sure they have enough processing power.
Google's TPUs have attracted interest partly because they offer another choice alongside Nvidia's widely used GPUs.
For OpenAI, getting chips from more suppliers could give it more hardware options to meet its computing needs.
Alphabet's Earnings May Provide an Update on AI Infrastructure
Alphabet is scheduled to report its quarterly financial results later on Wednesday.
Investors will look closely at how Google Cloud is performing and how much the company is spending on AI infrastructure.
The results are expected to provide more information about whether demand for AI services and computing power is leading to higher revenue.
Google's TPU business has benefited from deals with customers, including Anthropic, a company that competes with OpenAI.
These deals have helped increase demand for Google's own chip technology.
Alphabet Chief Financial Officer Anat Ashkenazi previously said the company expects to record a small share of the revenue from TPU sales agreements by the end of 2026.
Most of the revenue from these agreements is expected to be recorded during 2027.
This timing reflects the fact that some chip supply deals take a long time to complete. The sales covered by these agreements are expected to add to Alphabet's financial results over time.
OpenAI Is Developing Its Own AI Chip With Broadcom
While OpenAI is reportedly interested in Google's chips, it is also developing its own chip technology.
In June, the company revealed its first custom AI chip, designed in partnership with Broadcom.
OpenAI said it planned to start using the chip by the end of 2026 as part of a programme to develop several generations of chips.
This project is another way for the company to secure the computing power needed for its AI models.
Developing its own chips could help OpenAI build hardware suited to its specific computing needs while continuing to use chips made by outside companies.
The programme also shows the different ways major AI companies are trying to buy or develop the chips they need.
Competition and Business Partnerships Continue Across the AI Industry
The reported chip purchases show how companies can do business together even when they compete in the AI market.
Google and OpenAI compete in areas such as generative AI models, consumer apps and search-related services.
At the same time, Google Cloud provides computing equipment and services that can help run OpenAI's models.
A direct deal to supply chips would create another business connection between the companies.
The development also shows how access to enough computer chips is becoming more important as AI developers try to expand their operations.
Nvidia remains a major supplier of AI processors. However, Google's TPU sales and chip development projects involving companies such as Broadcom show that businesses are trying to find more hardware options.
What Comes Next for OpenAI and Google's AI Chips?
OpenAI's reported plan to buy Google's AI chips would expand a business relationship that already includes Google Cloud services and previously reported rentals of Google's TPUs.
The proposed deal has not been confirmed, and no prices or purchase amounts have been made public.
For Google, selling TPUs directly offers another way to earn money from its chip technology, alongside its cloud computing business.
Alphabet expects to record most of the revenue from existing TPU sales agreements in 2027, with a smaller amount expected before the end of 2026.
Meanwhile, OpenAI is continuing to develop custom chips with Broadcom, with the first planned use of the chips expected before the end of the year.
These developments show how important chip supplies, computing costs and spending on infrastructure are becoming as AI companies expand their operations.