Google CEO Sundar Pichai says he is \u201cvery excited\u201d to supply OpenAI, the search giant\u2019s largest competitor in AI, with cloud computing resources to train and serve the company\u2019s AI models as part of a recently struck partnership.<\/p>\n
\u201cWith respect to OpenAI, look, we are very excited to be partnering with them on Google Cloud,\u201d said Pichai on Google\u2019s second-quarter earnings call on Wednesday. \u201cGoogle Cloud is an open platform, and we have a strong history of supporting great companies, startups, AI labs, etc. So super excited about our partnership there on the cloud side, and we look forward to investing more in that relationship and growing that.\u201d<\/p>\n
The comment came shortly after analysts peppered Pichai and other Google executives with questions about how AI would affect its core search business and why Google is spending an extra $10 billion on capital expenditures this year to catch up in the AI race. Roughly two and a half years since the launch of ChatGPT, Google has now shifted its focus squarely on developing leading AI models and products to compete with OpenAI.<\/p>\n
ChatGPT is a major threat to Google Search, but the OpenAI deal marks a massive new customer for Google Cloud. It\u2019s a treacherous relationship for Google to navigate; OpenAI may ultimately use Google\u2019s cloud infrastructure and chips to upend the company\u2019s core Search product.<\/p>\n
Earlier this month, OpenAI quietly added Google Cloud to a public list of suppliers<\/a> that it uses for cloud computing services, alongside Microsoft and Oracle. Reuters previously reported in June that OpenAI was considering tapping Google Cloud for extra computational power<\/a>.<\/p>\n Notably, Google Cloud revenue soared in the second quarter of 2025 to $13.6 billion, up from $10.3 billion in the same quarter last year. Google attributes a significant chunk of that growth to the Google Cloud Platform and other products it offers to AI companies. Google Cloud is still a small business relative to Google Search, but it seems to be growing in the AI era.<\/p>\n Several large AI labs have tapped Google Cloud as a cloud computing partner, including Anthropic, Ilya Sutskever\u2019s Safe Superintelligence, Fei-Fei Li\u2019s World Labs, and now OpenAI. Pichai noted on the earnings call that the company has been successful at winning deals with large AI labs thanks to its large supply of Nvidia GPU chips and in-house TPU chips.<\/p>\n Techcrunch event<\/p>\n \n\t\t\t\t\t\t\t\t\tSan Francisco Google Cloud seems like a smart partner for OpenAI. The startup is extremely constrained when it comes to Nvidia GPUs, which it uses to train new AI models and serve them to hundreds of millions of users. Those constraints have been a major tension point with OpenAI\u2019s biggest backer and largest cloud computing partner, Microsoft<\/a>, forcing the ChatGPT maker to turn to its competitors in the cloud market.<\/p>\n
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\n\t\t\t\t\t\t\t\t\t\t\t\t\tOctober 27-29, 2025\n\t\t\t\t\t\t\t<\/p>\n