Google is giving OpenAI more computing power to keep up with everyone’s AI cravings

What you need to know

• OpenAI is now leaning on Google Cloud to help carry the backend load for ChatGPT and other AI tools.
• Google Cloud will now power ChatGPT’s Enterprise, Edu, Team plans, and the API.
• Sam Altman blamed the ongoing GPU shortage for the pivot to multiple cloud providers.

OpenAI is tapping Google Cloud to help run the backend for ChatGPT and its other AI tools. Basically, Google is stepping in to handle part of the heavy lifting under the hood.

The AI giant has long leaned solely on Microsoft Azure to keep its services running. But with demand climbing, it’s shifting gears and looking to expand its backend setup and avoid putting all its eggs in Microsoft’s basket.

This marks the first big move in that shift. According to CNBC, OpenAI is about to start running parts of ChatGPT on Google's cloud. OpenAI's updated sub-processor list shows that Google Cloud will now help run ChatGPT’s Enterprise, Edu, and Team plans, plus the API side of things.

OpenAI CEO Sam Altman wasn’t subtle about it, having recently pointed to the GPU shortage as a major reason behind the push to both scale up and branch out to more cloud partners.

Rumors about the OpenAI-Google Cloud deal first surfaced in June, but the fine print was pretty vague at the time.

Google’s quiet win

OpenAI jumping on board with Google Cloud is a solid win for Google. Even though it trails behind AWS and Azure, Google’s cloud setup will now help power OpenAI’s operations in the U.S., UK, Japan, the Netherlands, and Norway.

This change probably flies under the radar for most users, but it’s a pretty bold shift in strategy. OpenAI, backed by Microsoft and often toe-to-toe with Google in the AI race, is now buying compute power straight from Google. Both have spent billions pushing AI forward, competing in everything from chatbots to search, but now they’re sharing some of the same server space.

By spreading out its cloud partners, OpenAI avoids getting too tied to just one provider. More options equals better deals and first dibs on cutting-edge processors.