OpenAI enlists Google Cloud to power ChatGPT - CNBC

Investing.com -- OpenAI has added Alphabet Inc’s (NASDAQ:GOOGL) Google Cloud as a key infrastructure provider for its ChatGPT service and APIs, marking an important shift in its cloud strategy. CNBC reports that the company announced Wednesday that it would now rely on a diversified network of cloud partners including Microsoft (NASDAQ:MSFT), CoreWeave, Oracle (NYSE:ORCL), and Google to meet soaring demand.

The move comes amid ongoing reports of a strained relationship between OpenAI and Microsoft, which had initially held an exclusive cloud partnership with the AI firm. Microsoft has since named OpenAI as a competitor in the cloud space, signaling a more complex and potentially tense realignment between the two companies.

Expanding to Google Cloud signals both a tactical move by OpenAI and a major win for Google, whose cloud business trails behind market leaders Amazon (NASDAQ:AMZN) Web Services and Microsoft Azure. The decision underscores the immense computing demands of large language models, which require substantial global infrastructure to operate at scale.

OpenAI’s decision to spread its workload across multiple providers is driven by a surge in global AI usage and the limitations of relying on a single cloud vendor. The firm expects to use Google’s cloud infrastructure for its ChatGPT assistant.

The arrangement appears more additive than competitive, with OpenAI’s computing appetite substantial enough to require capacity from nearly every major vendor.

Google’s addition to OpenAI’s supplier list reinforces a broader industry pattern of multi-cloud architecture, particularly among firms at the cutting edge of AI development. In many cases, the limitations of a single provider’s hardware availability or geographic footprint render exclusive arrangements impractical.

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