OpenAI Partners with Google Cloud in Unexpected Move; Plans to Reassess Microsoft Collaboration – W.Media

OpenAI has surprised many by partnering with Google Cloud to address its rising computing demands, as reported by Reuters. This collaboration, finalized in May, allows OpenAI to diversify its computing sources beyond its primary backer, Microsoft. The deal highlights the intense competition in the AI space, especially as OpenAI’s ChatGPT challenges Google’s search business. Despite their rivalry, the agreement marks a significant win for Google Cloud, which will enhance its capacity to service AI models. OpenAI had previously relied solely on Microsoft Azure for its infrastructure but is now exploring various partnerships, including with Oracle and SoftBank. Meanwhile, Google is expanding its in-house chip production to attract more customers, indicating its commitment to competition. Analysts view this deal as a way for both companies to navigate the fierce landscape of AI while acknowledging that ChatGPT poses a genuine threat to Google’s market dominance.

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