OpenAI Reportedly Set to Buy Google’s AI Chips as Nvidia Rivalry Grows

TLDR

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OpenAI plans to buy AI chips from Google, according to a person familiar with the matter.
The chips are Google’s TPUs, an alternative to Nvidia’s graphics chips.
OpenAI also built 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.
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 on Tuesday.

OpenAI reportedly intends to buy some AI computing chips from Google $GOOGL
Final terms of any deal aren’t yet known – Bloomberg pic.twitter.com/hRmdYY5r6l
— Evan (@StockMKTNewz) October 28, 2026

Final terms of any deal are not yet known. The source asked not to be named because the talks are private.

OpenAI and Google both declined to comment. Neither company has confirmed the report.

What the chips are

The chips are Google’s tensor processing units, known as TPUs. Google began working on them more than a decade ago.

At first, the chips sped up Google’s web search engine and made it more efficient. They later proved useful for AI work.

In recent years, TPUs have become an alternative to Nvidia’s graphics processing units. Companies are looking for cheaper options.

Google began selling TPUs directly to some customers this year. Deals with customers such as Anthropic have raised demand.

Oracle said on Tuesday that TPUs will be available through its cloud computing infrastructure. “The next generation of AI will require a diverse range of compute,” said Google executive Amin Vahdat.

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. Last week, OpenAI said it would offer its frontier AI models through Google Cloud.

OpenAI’s own chip

OpenAI is building its own chip as well. In June, it unveiled its first custom AI chip, designed with Broadcom.

The company plans to deploy the processor by the end of this year. It is part of a multi-generation chip program.

The chip is called Jalapeno. It was created with help from Google veterans.

Richard Ho runs OpenAI’s internal chip team. He was previously involved in developing Google’s TPUs.

Amazon, Microsoft and Alphabet plan to spend as much as $600 billion combined this year on AI infrastructure. Investors are asking when that spending will lead to returns.

Alphabet CFO Anat Ashkenazi has said the company expects to begin recognizing a small share of TPU sales revenue by the end of this year. Most of it is expected in 2027.

Alphabet shares closed at $316.83 on Tuesday, up 0.84%. They traded at $320.81 in pre-market trading on Wednesday.

Alphabet reports quarterly results later on Wednesday. Investors will look for signs that AI spending is driving growth in its cloud business.