OpenAI is set to utilize Google’s cloud servers in a move aimed at diversifying its compute portfolio beyond Microsoft Azure. The deal comes after several months of negotiations and marks another shift away from the exclusive data center provider, Microsoft Azure.
In January, OpenAI CEO Sam Altman cited insufficient computing capacity as a reason for product delays. To address this, the company signed an $12 billion deal with CoreWeave in March to provide increased cloud compute capacity.
However, it appears that OpenAI will no longer rely exclusively on Microsoft Azure. Instead, they are joining Google Cloud’s customer portfolio, which is expected to significantly boost revenue. As a major competitor in the AI space, this partnership may indicate a softening between the two companies.
Google Cloud has seen substantial growth, with $43 billion in revenue last year, accounting for 12% of Alphabet’s overall revenue. The addition of OpenAI will likely extend these numbers dramatically. Despite this, there are concerns about Google’s ability to meet customer demand, particularly regarding data center expansion.
OpenAI is thriving, with a target revenue goal of around $12 billion and an estimated annual revenue of $10 billion by June. This growth suggests that the company will continue to thrive in the competitive AI market.
Source: https://www.engadget.com/ai/openai-will-reportedly-start-using-googles-cloud-servers-162311068.html