OpenAI plans to buy Google’s AI chips, reports say

OpenAI plans to buy Google's tensor processing units (TPUs), The Information reported on Tuesday, Oct. 27, citing a person familiar with the matter. The report did not disclose financial terms or other details, according to Reuters Thomson Reuters Corporation ↘ 0.27%. Bloomberg separately reported that OpenAI intends to buy AI computing chips from Alphabet's ↗ 1.60% Google, citing its own source, who said final terms of any deal are not yet known. OpenAI and Google declined to comment, Bloomberg reported.bloomberg.com+1

A purchase would move OpenAI from renting Google's chips to owning them. It would also point to OpenAI diversifying beyond Nvidia ↘ 1.17%, whose graphics processors it relies on heavily. OpenAI is one of the largest buyers of Nvidia GPUs, and Reuters reported in June 2025 that the ChatGPT maker had begun renting Google's AI chips.investing.com

Hiring for TPU work

OpenAI has also posted a job listing for an engineer to optimize its frontier models on TPUs, saying experience in either training or inference is welcome, Yonhap News Agency reported. The Information read the listing as a sign that OpenAI's work to optimize for TPUs is at an early stage, Yonhap noted. When OpenAI first started renting TPUs last year, it said it had "no specific plans to use TPUs at present," Seoul Economic Daily reported.yna.co.kr+1

According to Bloomberg, the plan is part of OpenAI's broader effort to add processing power quickly. That effort includes its in-house Jalapeno chips, which it developed with Broadcom ↗ 2.77% and plans to start using later this year. Richard Ho, who leads OpenAI's chip team, previously worked on Google's TPUs.uk.finance.yahoo.com

Google widens TPU reach

The report came the same day Oracle ↗ 10.73% said it would offer TPUs through its cloud infrastructure. It is the first time a major cloud provider other than Google will offer the chips, and the service is set to launch by 2027, The Information reported. "The next generation of AI will require a diverse range of compute," Google executive Amin Vahdat said in a statement announcing the Oracle deal, Bloomberg reported.theinformation.com+1

Anthropic also disclosed in its IPO filing this week a five-year, $161 billion agreement with Broadcom to lease equipment based on Google's TPUs, The Herald Business reported. Last week, OpenAI said it would make its frontier models available through Google Cloud, deepening ties between two companies that compete in AI products and search, Yahoo Finance reported.mbiz.heraldcorp.com+1

Earnings in focus

Alphabet shares rose in overnight trading after the report, ahead of the company's quarterly results, Yahoo Finance reported. Alphabet reports later on Wednesday, Oct. 28, and investors will be watching for signs that its heavy AI spending is still driving growth in its cloud business, Reuters reported.finance.yahoo.com+1