OpenAI Plans to Buy Google’s AI Chips, Deepening Commercial Ties Between Rivals

Commercial ties between two major rivals in the artificial intelligence industry, OpenAI and Google, part of Alphabet, are growing stronger. According to a report by technology news outlet The Information, OpenAI is planning to purchase Google’s proprietary AI chips directly, known as Tensor Processing Units (TPUs).

The chip-buying initiative follows OpenAI’s recent announcement that it would make its frontier AI models available through Google Cloud. The planned purchase would mark the second major commercial agreement between the two technology giants.

Google TPUs Emerge as an Alternative to NVIDIA Chips

The global AI chip market is currently experiencing exceptionally strong demand for NVIDIA processors, alongside supply constraints. As a result, Google’s TPUs are gaining popularity as a potentially more affordable alternative to NVIDIA’s chips. Earlier this year, Google began selling TPUs directly to selected customers.

Although OpenAI was previously one of NVIDIA’s major customers, it has been renting and using Google TPUs since mid-2025. In addition, OpenAI is pursuing multiple approaches to meet its enormous computing needs, including developing its own chips with the help of US chipmaker Broadcom and coordinating with cloud partners.

AI Infrastructure Investment and the Path to Profitability

Mega-cap technology companies such as Amazon, Microsoft and Google have collectively set a target of investing approximately $600 billion in AI infrastructure this year.

However, market analysts remain uncertain about when these massive capital investments will begin generating substantial commercial returns or profits.

In this regard, Google Chief Financial Officer Anat Ashkenazi has said that a significant portion of the revenue from TPU sales and leasing agreements with major customers such as Anthropic and OpenAI is expected to become visible on Google’s balance sheet around 2027.

//DBTech/BMT/OR//