OpenAI has partnered with Alphabet Inc (NASDAQ:GOOG) to utilize its Google cloud service to address its need for computing capacity, according to a Reuters report.
The deal, a surprise collaboration between the two rivals in the AI space, was reportedly finalized in May following months of discussions.
The additional computing capacity supplied by Google’s cloud unit will be used by OpenAI’s existing infrastructure for training its AI models, sources told Reuters.
This deal reduces OpenAI’s reliance on Microsoft, a major financial supporter, whose Azure cloud service had been the exclusive data center provider for OpenAI until January 2025.
Shares of Alphabet were boosted by the news, adding 2.3% at about $180 in the early afternoon on Tuesday.
OpenAI, Google and Microsoft declined to comment on the report.