OpenAI has struck a deal with Google to use its cloud computing infrastructure, marking a shift away from Microsoft Azure as its exclusive provider. The agreement, finalized in May, comes despite the intense competition between the two companies in the AI space.
The partnership addresses growing demands for computing power as OpenAI’s annual revenue reached $10 billion in June. Under the deal, Google Cloud will provide additional capacity to help OpenAI train and run its AI models.
Microsoft has been OpenAI’s long-standing partner since 2019, with significant investments from Microsoft in 2021 and 2023. However, OpenAI had begun seeking data center deals elsewhere due to Microsoft’s inability to supply the required servers at a faster pace.
The partnership between Google and OpenAI demonstrates how competitors can form mutually beneficial alliances when it comes to expanding their capabilities. This move also highlights that the AI space is no longer a winner-take-all competition, with Google’s CEO recently suggesting that the rivalry may be more collaborative than competitive.
Source: https://arstechnica.com/ai/2025/06/openai-signs-surprise-deal-with-google-cloud-despite-fierce-ai-rivalry