TLDR
- OpenAI plans to buy Google’s AI chips, The Information reported.
- Financial terms and other details were not disclosed.
- OpenAI is one of the largest buyers of Nvidia chips.
- OpenAI also plans to deploy a custom chip made with Broadcom by year end.
- Alphabet reports quarterly results on Wednesday.
OpenAI plans to buy Google’s AI chips, The Information reported on Tuesday. The report cited a person familiar with the matter. Reuters relayed the report.
The report did not give financial terms, the number of chips, or a delivery schedule. Neither OpenAI nor Google has confirmed the plan. OpenAI declined to comment, and Google did not immediately respond to a request for comment.
What the Reported Deal Involves
The chips are Google’s Tensor Processing Units, known as TPUs. These are processors built for machine learning and AI work. Google began selling TPUs directly to some customers this year.
The reported plan would deepen ties between OpenAI and Google. The two compete in AI products and search. They have also made more commercial deals in recent months.
Last week, OpenAI said it would make its frontier AI models available through Google Cloud. Reuters also reported in June 2025 that OpenAI had started renting Google’s AI chips. The new plan would move from renting to buying.
OpenAI needs a lot of computing power to run ChatGPT and build new models. It is already one of the largest buyers of Nvidia graphics processing units, or GPUs. It uses them to train and run its AI models.
Google’s TPUs have gained interest as an alternative to Nvidia’s chips. Companies are looking for cheaper options as demand for AI computing grows. Using several suppliers could give OpenAI more flexibility and help it manage costs.
Using TPUs would also require changes on OpenAI’s side. The company would need to adapt parts of its software and model systems to run on them. Buying different chips does not by itself mean they will work well in existing systems.
Deals with other customers, including rival Anthropic, have raised demand for Google’s TPUs. Alphabet’s chief financial officer, Anat Ashkenazi, has said the company expects to start recognizing a small share of revenue from TPU sales agreements by the end of this year. She said most of that revenue is expected in 2027.
OpenAI’s Other Chip Plans
OpenAI is also building its own chips. In June, it unveiled its first custom AI chip, designed with Broadcom. The company said it planned to deploy the processor by the end of this year.
The chip is part of a multi-generation chip program. OpenAI is now using Nvidia GPUs, looking at Google TPUs, and developing its own processors.
Tech companies are raising spending to meet demand for AI computing. Amazon, Microsoft and Google parent Alphabet plan to spend as much as $600 billion combined this year on AI infrastructure. Investors have been asking when that spending will lead to meaningful returns.
Alphabet will report its quarterly results on Wednesday. Investors are looking for signs that its heavy AI spending is driving growth in its cloud business.
