OpenAI plans to buy Google AI chips to reduce Nvidia reliance: report

OpenAI plans to buy Google AI chips to reduce Nvidia reliance: report OpenAI is planning to purchase Google's custom Tensor Processing Units (TPUs), marking a significant strategic shift to diversify its hardware supply and reduce its heavy single-vendor reliance on Nvidia. As reported by The Information, the reported plan would deepen ties between OpenAI and Alphabet's Google, which compete in AI products and search but have increasingly struck commercial deals. OpenAI plans to buy Google AI chips to reduce Nvidia reliance: report Last week, OpenAI said it would make its frontier AI models available through Google Cloud. Evidence of the move includes targeted hiring activity at OpenAI, such as job postings seeking engineers to optimize frontier models to run on Google's architecture, signaling that the initiative has progressed into substantive technical execution. While OpenAI remains one of Nvidia's largest customers with massive multi-billion-dollar infrastructure commitments, incorporating Google's specialized silicon provides a powerful alternative for massive AI workloads and introduces vital supply-chain leverage. For Google, supplying hardware to a chief AI rival serves as a major commercial validation of its custom chip division, showcasing TPUs as a premier infrastructure choice outside of its own ecosystem. Google's Tensor Processing Units (TPUs) have gained traction as an alternative to Nvidia's market-leading AI chips as companies seek cheaper options. Alphabet's Google began selling TPUs directly to some customers this year. Amazon, Microsoft, and Google parent Alphabet plan to spend as much as $600 billion combined this year on AI infrastructure as investors increasingly question when such spending will translate into meaningful returns. Deals with customers including rival Anthropic have fueled demand for Google's TPUs. Alphabet expects to begin recognizing a small percentage of revenue from TPU sales agreements by the end of this year, with the vast majority expected to be recognized in 2027, CFO Anat Ashkenazi previously said. OpenAI is already among the largest buyers of Nvidia's graphics processing units (GPUs), which it uses to train and deploy AI models. According to Reuters, the ChatGPT in June 2025 maker had begun renting Google's AI chips. As reported, the new report did not disclose financial terms or other details related to Google and OpenAI's new deal.