OpenAI plans to buy Google’s AI chips

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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.

By Reuters

Updated - October 28, 2026 at 08:43 AM.

OpenAI is already among the largest buyers of Nvidia’s graphics processing units (GPUs), ‌which it uses to train and deploy AI ​models. | Photo Credit: REUTERS/Dado Ruvic

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 to ​meet surging demand for AI computing.

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. Last week, OpenAI said it would make its frontier AI models available through Google ‌Cloud.

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.

OpenAI is already among the largest buyers of Nvidia’s graphics processing units (GPUs), ‌which it uses to train and deploy AI ​models. Reuters reported in June 2025 that the ChatGPT maker had begun renting Google’s AI ⁠chips.

Google’s Tensor Processing Units (TPUs) have gained traction as an alternative to Nvidia’s market-leading AI chips as companies seek cheaper ‌options. Google began selling TPUs directly to some customers this year.

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.

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 in June unveiled its first custom AI chip designed with Broadcom, and said ‌it planned to deploy the processor by the end of this year as part of a multi-generation chip ​program.

Published on October 28, 2026

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