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OpenAI plans to buy Google's AI chips, The Information reports - Finance news and analysis from Global Banking & Finance Review
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OpenAI plans to buy Google's AI chips, The Information reports

Published by Global Banking & Finance Review

Posted on October 28, 2026

2 min read

· Last updated: October 28, 2026

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OpenAI Eyes Google’s AI Chips to Fuel Growing Demand for AI Computing

OpenAI's Strategic Move Towards Google’s AI Chips

OpenAI’s Plans and Industry Context

Oct 27 (Reuters) - OpenAI plans to buy Google's AI chips, The Information reported on Tuesday, citing a person familiar with the matter, as technology companies ramp up spending on data centers and semiconductors to meet surging demand for AI computing.

Strengthening Ties Between OpenAI and Google

The planned purchase would deepen ties between OpenAI and Alphabet's Google, which compete in AI products and search. The report did not disclose financial terms or other details.

Official Responses

Google did not immediately respond to a Reuters request for comment outside regular business hours, while OpenAI declined to comment.

AI Chip Market Dynamics

OpenAI’s Current Chip Suppliers

OpenAI is one of the largest buyers of Nvidia's graphics processing units, or GPUs, which the ChatGPT maker uses to train AI models and run inference computing.

Transition to Google’s TPUs

Reuters reported in June 2025 that OpenAI had begun renting Google's AI chips.

Advantages of Google’s TPUs

Google's Tensor Processing Units, or TPUs, have gained traction as an alternative to Nvidia's market-leading AI chips as companies seek cheaper options and chips suited to running AI models. Google began selling TPUs directly to some customers this year.

Alphabet’s Financial Outlook

Investor Expectations

Alphabet will report its quarterly results later on Wednesday, with investors looking for signs that its heavy investment in AI is continuing to drive growth in its cloud business.

Reporting Credits

(Reporting by Carlos Méndez in Mexico City; Editing by Sherry Jacob-Phillips and Subhranshu Sahu)

Key Takeaways

  • OpenAI’s planned purchase of Google’s TPUs signals a diversification from Nvidia-dominated infrastructure and strengthens ties with Alphabet, as reported by The Information (theinformation.com).
  • Google has begun selling its TPUs directly to select customers in their own data centers, with revenue recognition starting in 2026 and expected to ramp in 2027 (networkworld.com).
  • OpenAI had already started renting Google’s TPUs in mid-2025, marking its first meaningful use of non‑Nvidia chips (investing.com).

References

Frequently Asked Questions

Why is OpenAI planning to buy Google's AI chips?
OpenAI is considering buying Google’s AI chips to meet the increasing demand for AI computing and diversify beyond Nvidia GPUs.
What are Google TPUs and how do they compare to Nvidia GPUs?
Google TPUs, or Tensor Processing Units, are AI chips offering a cost-effective alternative to Nvidia’s GPUs for running and training AI models.
Has OpenAI previously used Google's AI chips?
Yes, Reuters reported in June 2025 that OpenAI had begun renting Google's AI chips before considering purchasing them.
How does this potential purchase affect OpenAI and Google's relationship?
The potential purchase could deepen ties between OpenAI and Google, despite their competition in AI and search products.
When will Alphabet report its next quarterly results?
Alphabet is scheduled to report its quarterly results on the Wednesday mentioned in the article.

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