OpenAI plans to buy Google's TPU AI chips, The Information reports

OpenAI plans to buy Google's AI chips, known as Tensor Processing Units (TPUs), The Information reported on Oct 27, citing a person familiar with the matter. OpenAI is among the largest buyers of Nvidia's graphics processors, which it uses to train and run its AI models.

The report did not disclose financial terms or other details. OpenAI declined to comment to Reuters, and Google did not immediately respond to a Reuters request for comment.

Ties between rivals

OpenAI and Google compete in AI products and search but have increasingly struck commercial deals. Earlier in October, OpenAI said it would make its frontier models available through Google Cloud, after a similar move with Amazon Web Services.

Reuters reported in June 2025 that OpenAI had begun renting Google's chips. Soon after, OpenAI said it had no active plans to use them in its products.

Google's chip business

Google began selling TPUs directly to some customers in 2026, letting them run the chips in their own data centers. Deals with customers including Anthropic have driven demand. Alphabet finance chief Anat Ashkenazi has said the company expects to recognize a small share of revenue from TPU sales agreements by the end of 2026, with the vast majority in 2027.

On Oct 27, Oracle and Google announced that TPUs will be offered through Oracle Cloud Infrastructure, the first large cloud platform outside Google to carry them. Oracle said the chips will be available in calendar 2027 and ramp over several years.

Who is exposed

• Alphabet designs and sells the TPUs, and the report adds OpenAI to an outside customer base that includes Anthropic.
• Nvidia supplies the graphics processors OpenAI already runs, and Nvidia CEO Jensen Huang has said OpenAI's existing and planned deployments could represent about $600 billion of Nvidia compute through 2030.
• Broadcom signed a long-term agreement in April to design and supply Google's TPUs through 2031.
• Broadcom also co-designed OpenAI's first custom AI chip, unveiled in June, which OpenAI plans to deploy by the end of 2026.
• Oracle plans to host Google TPUs in its cloud starting in 2027.

What comes next

• Alphabet reports quarterly results on Oct 28, with investors watching whether its AI spending is driving growth in its cloud business.
• Nvidia reports third-quarter fiscal 2027 results on Nov 17.