OpenAI Taps Google Cloud – Strategic Win for GOOGL

by MarketNewsData

This signals a complex “coopetition” within the AI industry, where rivals like OpenAI and Google are willing to collaborate on infrastructure to meet the industry’s rapidly expanding needs. Source

  • OpenAI names Google Cloud as a compute partner alongside Microsoft, Oracle, and CoreWeave.
  • Move supports surging demand for ChatGPT and eases GPU supply constraints.
  • Marks shift to a multi-cloud strategy, reducing reliance on Microsoft Azure.
  • For Google, this is a significant win for its cloud division, which is younger and smaller than those of Amazon and Microsoft.
    • The partnership highlights Google Cloud’s growing capabilities in supporting large language models.
    • Underscores its increasing relevance in the competitive AI infrastructure market.
  • Reflects OpenAI’s push for more flexibility and scalability in operations.
  • GOOGL stock is up $0.97 (+0.53%) after hours
    • Reports Q2 earnings July 23 after the close.
    • YTD: -3.34%, but up 12.97% since last earnings in late April.

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