TLDR
- OpenAI plans to buy AI chips from Google, according to a person familiar with the matter.
- The chips are Google’s tensor processing units, known as TPUs, which compete with Nvidia’s graphics chips.
- OpenAI is also developing its own chip with Broadcom and plans to deploy it by the end of this year.
- Oracle said Tuesday that TPUs will be available through its cloud infrastructure.
- Alphabet reports quarterly results later Wednesday.
OpenAI plans to buy artificial intelligence chips from Google, according to a person familiar with the matter. The Information first reported the plan, and Bloomberg and Reuters later cited the same kind of source. The final terms of any deal are not known.
OPENAI REPORTEDLY PLANS TO BUY GOOGLE AI CHIPS
OpenAI plans to purchase AI chips from Google ($GOOGL), according to The Information, citing a person familiar with the matter.
Financial terms and the size of the potential deal were not disclosed. Reuters has not independently…
— *Walter Bloomberg (@DeItaone) October 28, 2026
OpenAI and Google both declined to comment. The source asked not to be named because the talks are private.
What the deal would involve
The chips are Google’s tensor processing units, or TPUs. Google began working on them more than a decade ago. At first, they were used to speed up its web search engine and make it run more efficiently.
The chips later proved useful for AI work. In recent years they have become an alternative to Nvidia’s graphics processing units. Google began selling TPUs directly to some customers this year.
OpenAI is already one of the largest buyers of Nvidia’s graphics chips. It uses them to train and run its AI models. Reuters reported in June 2025 that OpenAI had begun renting Google’s AI chips.
The reported plan would deepen ties between the two companies. They compete in AI products and search, but they have signed more business deals in recent months. Last week, OpenAI said it would make its frontier AI models available through Google Cloud.
OpenAI’s own chip effort
OpenAI is also building its own chips. In June, the company unveiled its first custom AI chip, designed with Broadcom. It said it planned to deploy the processor by the end of this year as part of a multi-generation chip program.
The in-house chips, called Jalapeno, were created with help from Google veterans. Richard Ho, who runs OpenAI’s internal chip team, was previously involved in developing Google’s TPUs.
OpenAI joins a growing group of companies building their own AI chips. Many of them hope to challenge Nvidia’s lead in the field.
Spending and demand
Amazon, Microsoft and Google parent Alphabet plan to spend as much as $600 billion combined this year on AI infrastructure. Investors are asking when that spending will lead to meaningful returns.
Deals with customers such as Anthropic have raised demand for Google’s TPUs. Alphabet CFO Anat Ashkenazi has said the company expects to begin recognizing a small share of revenue from TPU sales agreements by the end of this year. Most of that revenue is expected in 2027.
Oracle announced on Tuesday that TPUs will be available through its cloud computing infrastructure. “The next generation of AI will require a diverse range of compute,” Google executive Amin Vahdat said in a statement about that deal.
Alphabet shares closed at $316.83 on Tuesday, up 0.84%. They were at $320.81 in pre-market trading Wednesday. Alphabet will report its quarterly results later on Wednesday, and investors will look for signs that its AI spending is driving growth in its cloud business.
Stop guessing and start investing with confidence. KnockoutStocks gives you the AI insights, market intelligence, and stock research you need to spot opportunities, cut through the noise, and make smarter investment decisions — all in one powerful platform.
Sign up today and get 50% OFF full access to our premium stock picks.
Simply use coupon code SPECIAL50 at checkout to claim your exclusive discount.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
