Google Boosts OpenAI's AI Capacity

To meet the surging demands for AI, Google is providing OpenAI with additional computing resources. This move marks a shift from OpenAI's previous reliance on Microsoft Azure as its sole data centre infrastructure. The agreement with Google, finalised in May, follows months of negotiations. Google will allocate capacity to OpenAI to handle the growing demand for services like ChatGPT.

OpenAI continues to work with Microsoft, Oracle, and CoreWeave. The partnership with Google Cloud will provide computing resources across multiple regions, including the US, the UK, Japan, the Netherlands, and Norway. This international expansion supports OpenAI's global service delivery while providing redundancy and regional optimisation capabilities.

This collaboration signifies a strategic diversification for OpenAI, reducing its dependence on any single vendor. For Google, securing OpenAI as a customer strengthens its position in the AI infrastructure market, despite having a smaller cloud market share compared to Amazon Web Services and Microsoft Azure. Google also has a cloud business with Anthropic, which was established by former OpenAI executives.