OpenAI plans to buy Google's AI chips, The Information reports

The Information reported on Tuesday that OpenAI is planning to purchase Google's AI chips, citing a source familiar with the matter. This move would strengthen the ties between the two tech giants, despite their competitive relationship in AI products and search. OpenAI had recently announced making its frontier AI models available through Google Cloud.

The report did not provide financial terms or additional details. Google declined to comment, while OpenAI also did not respond to a Reuters request for comment. However, both Amazon, Microsoft and Alphabet, Google's parent company, plan to spend up to $600 billion in total on AI infrastructure this year, as investors question when such expenditures will yield tangible returns.

OpenAI has been a significant purchaser of Nvidia's graphics processing units (GPUs) to train and deploy AI models. In June 2025, Reuters reported that OpenAI had started renting Google's AI chips. Google's Tensor Processing Units (TPUs) have become an attractive alternative to Nvidia's leading AI chips, as companies aim for more cost-effective solutions. Google started selling TPUs directly to customers this year.

Alphabet is expected to report its quarterly results later on Wednesday, with investors closely watching for indications that its substantial investment in AI is still boosting growth in its cloud business. TPU agreements, including with customers like rival Anthropic, have driven demand for Google's TPUs. Alphabet anticipates recognizing a small percentage of TPU revenue by the end of 2025, with the majority expected in 2027, according to CFO Anat Ashkenazi.

In June, OpenAI unveiled its first custom AI chip, developed with Broadcom, and plans to deploy the processor by the end of the year as part of a multi-generation chip program.