- OpenAI brings Google Cloud on board for cloud computing infrastructure
- Microsoft is no longer OpenAI’s sole provider after a shakeup
- Google shares are up, Microsoft shares down
Despite having a long history with Microsoft, OpenAI is believed to have signed a deal with Google Cloud to help it meet rising demands for cloud computing services.
Reuters reports the deal was finalized in May 2025 after months of negotiating, citing an unnamed source familiar with the matter.
The finer details of its Google Cloud deal are unknown, but the move reflects OpenAI’s effort to reduce its reliance on a single vendor – in this case, Microsoft – having recently announced its own $500 billion Stargate Project earlier in 2025.
OpenAI agreement with Google Cloud
Although Microsoft has fuelled much of OpenAI’s growth with cloud infrastructure throughout a period of rapid expansion, the company stopped being its sole partner in March 2025, when OpenAI brought CoreWeave on board in a deal worth around $12 billion.
Now, Google Cloud will also provide resources to help OpenAI train and run its AI models.
During its first quarter of 2025, Google Cloud generated $12.3 billion in revenue, or nearly 14% of Google’s total revenue. A deal with OpenAI could significantly increase the cloud division’s revenue.
However, ChatGPT’s success has allowed OpenAI to explore in-house opportunities.
Besides the Stargate Project, in collaboration with SoftBank and Oracle, OpenAI is also working on its own AI chip, which could spell disaster for Nvidia, which has once again taken prime position as the world’s most valuable company, with a market cap of $3.510 trillion.
Sceptics are also uncertain about how Google Cloud’s deal with OpenAI could impact its existing operations and customers, with the cloud hyperscaler already struggling to meet demand on occasions.
Google shares rose 2.1% after the news, with Microsoft shares dipping 0.6%, pulling it into second position with a market cap of $3.500 trillion.
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