From rivals to partners: What’s the deal with Google and OpenAI? According to a Reuters article, Google and OpenAI signed a cloud computing agreement in May. The industry was surprised by the deal, as both companies are considered major AI competitors. The deal may have been influenced by signs of friction between OpenAI, Microsoft and other parties. The partnership is a win for both parties. OpenAI gains more computing resources, while Google benefits from its $75B investment in order to boost its cloud computing capability by 2025.
Google and OpenAI have signed a deal to help OpenAI meet its growing cloud computing requirements.
This story, Reuterscited anonymous sources who said that the deal was discussed for months before it was finalized in May. OpenAI struggled at this time to keep up with the demand as its weekly active users and businesses users grew during Q1 2025. Also, there are rumors of friction between OpenAI’s biggest investor Microsoft.
How the Deal Surprised the Tech Industry
It’s not necessary to introduce the rivalry between these two companies. OpenAI’s ChatGPT was launched in November 2022 and posed a serious threat to Google. Code red was triggered within the search giant as well as cloud services provider.
Google launched Bard, now known as Gemini, to compete directly with OpenAI. It had to catch up with OpenAI’s more advanced ChatGPT chatbot. Bard was plagued by numerous problems, and critics called it a half-baked software.
Gemini has made great strides over the past two years in terms of accuracy and quoting sources. However, it still experiences hallucinations. On social media you can see these examples, such as telling a user how to make spicy pasta with gasoline or the AI.
Then there’s the gem:
With the entire industry shifting towards more AI integrations, Google went ahead and integrated its AI suite into Search via AI OverviewsIt then doubled down with this integration. AI modeis an experimental feature which lets you perform AI powered searches by typing a question, uploading photos, or using your own voice.
AI Mode, a feature of Google Search, could one day be a competitor to ChatGPT, unless Google decides to ditch it. previous products. We doubt AI + Search’s fate, given the scale of the investment and Gemini’s significant improvement.
OpenAI and Google are both winners, but Microsoft is not so happy?
Money and the desire to expand can be the deciding factor in the business world. The rivalry between the two tech titans is no exception.
It could be partly attributed to OpenAI’s relationship with Microsoft. The Redmond, Washington based company has OpenAI and OpenAI-related technologies have been valued atbillions of dollars. Although their partnership hasn’t always been smooth, has the resources to meet the latter’s cloud computing requirements. Some would say that it started when OpenAI CEO Sam Altman, who was briefly removed in November 2023 from his position, put a strainon the partnership. The relationship between Satya Nadella, Microsoft CEO and him has been called the ‘best in tech’. Microsoft added OpenAI last year to its arsenal. List of competitors before losing out to AI Its status of OpenAI’s exclusive Cloud provider in January 2025.
And if that’s not enough, the two companies also have the goal of achieving AGI (artificial general intelligence). OpenAI is defined as when it develops AI systems which are capable of understanding and analyzing human language. Microsoft will no longer be able to use Microsoft’s technology if AGI reaches $100B profits. ChatGPT, the company behind ChatGPT, is expecting to generate $100B in profits. This could happen sooner than later. OpenAI has already signed deals with Microsoft, Oracle and CoreWeave for cloud services and infrastructure. It needs more and soon. The company has seen massive expansion in the last few months.
OpenAI announced in February that it had Over 400M weekly active users up from 300M by December 2024. ChatGPT Enterprise, ChatGPT Teams, and ChatGPT Education products are also used by a growing number of business users. The number of users jumped from 2M to 3M between February and March
Google is ready to deliver. Its parent company has This year, the company will invest $75Bin AI. This includes increasing its cloud computing capability.
In April, Google launched its 7th generation tensor processing unit (TPU) called Ironwoodis a model that has been specifically designed for inference. According to the company’s statement, the new TPU is designed to power AI models which will ‘proactively fetch and generate data in order to collaboratively deliver answers and insights, not just data’. It also expands Google’s extensive client list includes tech, gaming and entertainment companies, retail companies, and organizations in the public sectors.
As technology continues to evolve—from the return of ‘dumbphones’ to faster and sleeker computers—seasoned tech journalist, Cedric Solidon, continues to dedicate himself to writing stories that inform, empower, and connect with readers across all levels of digital literacy. Read more
With 20 years of professional writing experience, this University of the Philippines Journalism graduate has carved out a niche as a trusted voice in tech media. Whether he’s breaking down the latest advancements in cybersecurity or explaining how silicon-carbon batteries can extend your phone’s battery life, his writing remains rooted in clarity, curiosity, and utility.
Long before he was writing for Techreport, HP, Citrix, SAP, Globe Telecom, CyberGhost VPN, and ExpressVPN, Cedric’s love for technology began at home courtesy of a Nintendo Family Computer and a stack of tech magazines.
Growing up, his days were often filled with sessions of Contra, Bomberman, Red Alert 2, and the criminally underrated Crusader: No Regret. But gaming wasn’t his only gateway to tech.
He devoured every T3, PCMag, and PC Gamer issue he could get his hands on, often reading them cover to cover. It wasn’t long before he explored the early web in IRC chatrooms, online forums, and fledgling tech blogs, soaking in every byte of knowledge from the late ’90s and early 2000s internet boom.
That fascination with tech didn’t just stick. It evolved into a full-blown calling.
After graduating with a degree in Journalism, he began his writing career at the dawn of Web 2.0. What started with small editorial roles and freelance gigs soon grew into a full-fledged career.
He has since collaborated with global tech leaders, lending his voice to content that bridges technical expertise with everyday usability. He’s also written annual reports for Globe Telecom and consumer-friendly guides for VPN companies like CyberGhost and ExpressVPN, empowering readers to understand the importance of digital privacy.
His versatility spans not just tech journalism but also technical writing. He once worked with a local tech company developing web and mobile apps for logistics firms, crafting documentation and communication materials that brought together user-friendliness with deep technical understanding. That experience sharpened his ability to break down dense, often jargon-heavy material into content that speaks clearly to both developers and decision-makers.
At the heart of his work lies a simple belief: technology should fee l empowering, not intimidating. Even if the likes of smartphones and AI are now commonplace, he understands that there’s still a knowledge gap, especially when it comes to hardware or the real-world benefits of new tools. His writing hopes to help close that gap.
Cedric’s writing style reflects that mission. It’s friendly without being fluffy and informative without being overwhelming. Whether writing for seasoned IT professionals or casual readers curious about the latest gadgets, he focuses on how a piece of technology can improve our lives, boost our productivity, or make our work more efficient. That human-first approach makes his content feel more like a conversation than a technical manual.
As his writing career progresses, his passion for tech journalism remains as strong as ever. With the growing need for accessible, responsible tech communication, he sees his role not just as a journalist but as a guide who helps readers navigate a digital world that’s often as confusing as it is exciting.
From reviewing the latest devices to unpacking global tech trends, Cedric isn’t just reporting on the future; he’s helping to write it. Read less
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