OpenAI plans to purchase Google's tensor processing units (TPUs), marking a significant shift in its hardware strategy. The move comes as the company continues to invest heavily in AI infrastructure.
TL;DR
- OpenAI is reportedly buying Google's TPUs, adding to its existing use of Nvidia chips.
- This purchase could give Google a major customer for its newly commercialized TPUs.
- The deal highlights growing business ties between OpenAI and Google, despite their competition in AI products and search.
What happened
OpenAI plans to buy AI chips from Google, according to a report by The Information. The financial terms and other details of the planned purchase were not disclosed.
The chips in question are Google's tensor processing units (TPUs), which are specifically built for AI workloads. This purchase would mark a shift for OpenAI, which is among the largest buyers of Nvidia's graphics processors.
In April, Google announced it would sell TPU hardware directly to a small group of customers, allowing them to run the chips in their own data centers. Demand has grown, with customers like Anthropic driving significant sales.
Why it matters
This purchase could give Google a major customer for its TPUs, which it has only recently started selling. It also highlights OpenAI's diversified approach to AI hardware, as it continues to invest in its own custom AI chips.
The deal underscores the growing business ties between OpenAI and Google, despite their competition in AI products and search. Last week, OpenAI announced that its frontier models would become available on Google Cloud, following a similar move with Amazon Web Services.
The report comes as tech groups spend heavily on AI computing. Amazon, Microsoft, and Alphabet plan to spend as much as $600bn combined on AI infrastructure this year, according to Reuters.
Key facts
- OpenAI plans to buy Google's tensor processing units (TPUs).
- The financial terms and other details of the planned purchase were not disclosed.
- Google's TPUs are specifically built for AI workloads.
- OpenAI is among the largest buyers of Nvidia's graphics processors.
- Google announced in April it would sell TPU hardware directly to a small group of customers.
- Demand for Google's TPUs has grown, with customers like Anthropic driving significant sales.
- Alphabet's finance chief, Anat Ashkenazi, expects the company to book a small share of TPU sales revenue by the end of this year, with most coming in 2027.
- OpenAI and Google compete in AI products and search but have growing business ties.
Context
OpenAI and Google have a complex relationship, competing in AI products and search while also forming strategic partnerships. Last week, OpenAI announced that its frontier models would become available on Google Cloud, following a similar move with Amazon Web Services.
In June 2025, Reuters reported that OpenAI had begun renting Google's chips. However, OpenAI soon after stated it had no active plans to use them in its products.
OpenAI is also investing in its own hardware. In June, it unveiled its first custom AI chip, designed with Broadcom, and plans to put it into use by the end of this year.
