OpenAI plans to buy Google’s AI chips

OpenAI is considering acquiring Google's AI chips, according to a report by The Information. The potential purchase, which would strengthen the relationship between the two companies, is being driven by the increasing demand for AI computing. OpenAI currently relies on Nvidia's graphics processing units (GPUs) for training AI models and running inference computing.

However, Google's Tensor Processing Units (TPUs) have emerged as a popular alternative, offering cheaper and more suitable options for running AI models. Google began selling TPUs directly to customers this year. While the details of the potential deal remain undisclosed, the move would mirror a trend among technology companies to increase spending on data centers and semiconductors.

Alphabet, Google's parent company, is expected to release its quarterly results later in the week, with analysts closely watching for indications that the company's substantial AI investments continue to boost its cloud business.