OpenAI has signed a deal with Google to utilize Google Cloud services, surprising many given their competitive stance in the AI market. The specifics of the agreement are still unknown, but it signals OpenAI’s effort to diversify its computing resources beyond Microsoft Azure, its previous exclusive provider. OpenAI CEO Sam Altman had previously attributed product delays to limited computational capacity. Earlier this year, OpenAI partnered with CoreWeave for additional cloud resources, valued at nearly $12 billion.
While OpenAI continues to rely significantly on Azure and is revising its partnership terms with Microsoft, this collaboration with Google Cloud represents a significant boost for Google, especially as ChatGPT challenges its search dominance. Google Cloud’s service struggles with meeting heightened demand could complicate the integration, raising questions about priority access for OpenAI. OpenAI, meanwhile, is thriving and expects to generate around $10 billion in annual revenue, aiming for $12 billion by year’s end.
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