OpenAI to use Google cloud service alongside Microsoft

Investing.com -- OpenAI plans to add Alphabet (NASDAQ: GOOGL)’s Google cloud service to its computing resources, marking a surprise partnership between two major competitors in the artificial intelligence field.

The agreement, which was under negotiation for several months, was completed in May, according to a Reuters report on Tuesday. This move highlights the growing need for computing capacity in the industry.

For OpenAI, this represents another step to expand its computing sources beyond Microsoft (NASDAQ: MSFT), its primary backer. The company has already been working on its Stargate data center project as part of this diversification strategy.

Google’s cloud division will provide additional computing capacity to supplement OpenAI’s existing infrastructure for both training and running its AI models. This arrangement comes at a time when OpenAI’s ChatGPT is considered a major challenge to Google’s search business dominance.

Google executives have recently stated that the competition in AI might not result in a single winner taking the entire market.

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