OpenAI Partners with Google for AI Chip Rentals

Photo: Reuters

OpenAI, the company behind ChatGPT, has started renting artificial intelligence chips from Google to power its services, a source familiar with the matter revealed. OpenAI, one of the largest buyers of Nvidia’s graphics processing units (GPUs), typically uses these powerful chips to train AI models and for a process called inference computing. Inference computing allows AI models to use the knowledge they've learned to make predictions or decisions based on new information.

This move marks a significant shift for OpenAI as it has now turned to Google’s hardware, specifically its tensor processing units (TPUs), for its growing computing needs. TPUs were previously only used by Google for its internal projects but are now being offered to external customers. Google’s decision to offer TPUs to OpenAI comes at a time when Google is aggressively expanding its cloud services. The move is surprising since Google and OpenAI are competitors in the field of artificial intelligence. Notably, Google Cloud's TPUs have already attracted other tech giants like Apple, along with startups such as Anthropic and Safe Superintelligence, both of which were founded by former OpenAI leaders.

The deal signals OpenAI’s shift away from reliance on Microsoft’s data centers. Microsoft has been a major backer of OpenAI, but now the company appears to be diversifying its infrastructure. Renting Google’s TPUs is seen as a way to reduce the cost of inference, which has been an essential part of scaling AI services like ChatGPT. TPUs could serve as a cheaper alternative to Nvidia’s GPUs, which are typically expensive to use for large-scale AI models.

However, not all of Google’s TPUs are available to OpenAI. The report mentions that Google is not providing its most powerful TPUs to OpenAI, limiting the scale of the collaboration. The decision not to share its most advanced chips with OpenAI indicates that while Google is willing to work with OpenAI, it still sees itself as a competitor in the AI race.

Google declined to comment on the matter, and OpenAI also did not respond when contacted. Despite this, the partnership is significant as it highlights how Google is leveraging its in-house AI technology to drive its cloud services. The addition of OpenAI to Google Cloud’s customer list is an important milestone for the company, marking a major step in its ongoing efforts to expand its cloud business and take on competitors in the rapidly growing AI industry.