Thursday, July 17, 2025

Google (GOOGL.US) Unveils Plans for a Hybrid Cloud Ecosystem

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OpenAI has announced a significant partnership with Google, utilizing Google’s cloud services to run its popular chatbot, ChatGPT. This shift marks a departure from OpenAI’s previous reliance solely on Microsoft for cloud resources, necessitated by increasing demand for computing power. Both companies now compete in the AI tools and subscription services market, with Microsoft previously listing OpenAI as a competitor. OpenAI will integrate Google Cloud Platform for ChatGPT and its APIs while continuing to utilize resources from Microsoft, CoreWeave, and Oracle. This collaboration is promising for Google’s cloud division, which aims to grow amid competition from Amazon and Microsoft. Additionally, OpenAI signed a five-year agreement with CoreWeave worth $12 billion to enhance its computational capabilities. OpenAI co-founder Sam Altman has acknowledged capacity constraints due to the extensive use of NVIDIA GPUs for their models. Ultimately, this partnership diversifies OpenAI’s resources while fueling Google Cloud’s expansion.

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