OpenAI signed a deal with Google Cloud to use its cloud computing infrastructure for AI, despite the fierce competition between the two companies in the space. Reuters reports. The agreement, which was finalized in may after months of negotiation, marks a change in OpenAI’s strategic direction to diversify its computing resource beyond Microsoft Azure. Microsoft Azure had been its sole cloud provider up until January. Microsoft’s partnership with OpenAI, which dates back to 2019, will see significant investments from the computer giant by 2021 and 2023. The Information reported in October the ChatGPT maker was looking for data center deals outside of Microsoft, citing a need for more AI servers faster than Microsoft can supply them.
Google Cloud will offer additional computing power to OpenAI in order to train and run their AI models. According to sources who spoke with Reuters, OpenAI’s partnership will help meet the growing demand for computing power, as the company’s revenue has reached $10 billion by June.
This partnership, which was formed despite a fierce rivalry between Google and OpenAI in the AI sector, shows that competitors can form alliances if they are mutually beneficial.
DeepMind AI, the company’s AI unit, competes directly against OpenAI when it comes to developing AI models and consumer apps. OpenAI’s ChatGPT is arguably the biggest threat to Google’s Search business in recent years. However, Google’s CEO suggested recently that the AI race might not be a winner-takes-all.
