OpenAI (NASDAQ:OAI) is planning to purchase artificial intelligence chips developed by Alphabet’s Google (NASDAQ:GOOG), according to a report published Tuesday by The Information, citing a person familiar with the matter. The potential agreement would expand the commercial relationship between the two companies as demand for AI computing infrastructure continues to increase.
The reported plans come as major technology companies commit substantial capital to data centres, processors and other infrastructure required to develop and operate advanced artificial intelligence models.
Financial terms and other details of the proposed purchases were not disclosed. Google did not immediately respond to a Reuters request for comment outside regular business hours, while OpenAI declined to comment.
OpenAI and Google Expand Commercial Relationship
The potential chip purchases would represent another development in the relationship between OpenAI and Google, which compete in artificial intelligence products and internet search.
Despite that competition, the companies have increasingly established commercial arrangements involving computing infrastructure and AI services.
Last week, OpenAI announced that it would make its frontier artificial intelligence models available through Google Cloud.
The agreement provides another distribution channel for OpenAI’s advanced models while expanding the range of AI services available through Google’s cloud platform.
The reported plan to purchase Google-designed chips would extend the relationship into semiconductor procurement.
However, neither company has confirmed the proposed transaction, and the report did not specify purchase volumes, pricing or delivery schedules.
Google TPUs Offer Alternative to Nvidia Processors
Google’s Tensor Processing Units, or TPUs, have gained attention as an alternative to the graphics processing units supplied by Nvidia.
TPUs are specialized processors designed to handle computational workloads associated with artificial intelligence, including model training and inference.
OpenAI is already one of the largest purchasers of Nvidia GPUs, which it uses to develop and deploy its AI systems.
The company has also previously accessed Google’s semiconductor technology.
Reuters reported in June 2025 that OpenAI had begun renting Google’s AI chips, establishing an earlier commercial relationship involving the processors.
The latest report suggests OpenAI is considering direct purchases rather than relying exclusively on rented computing capacity.
Google began selling TPUs directly to selected customers this year as demand for alternatives to Nvidia’s processors increased.
AI Companies Seek Additional Computing Capacity
The reported transaction comes amid substantial investment in the infrastructure required to support artificial intelligence development.
Amazon, Microsoft and Alphabet expect to spend as much as $600 billion collectively this year on AI-related infrastructure.
The spending includes investments in data centres, computing equipment and systems needed to operate increasingly complex AI models.
As capital expenditure rises, investors are paying closer attention to the financial returns generated by these investments.
Companies developing AI systems are also evaluating different semiconductor technologies as they seek to manage computing costs and secure sufficient processing capacity.
Google’s TPUs have attracted interest partly because they offer another option alongside Nvidia’s widely used GPUs.
For OpenAI, access to additional chip suppliers could broaden the range of hardware available for its computing requirements.
Alphabet Earnings Expected to Provide AI Infrastructure Update
Alphabet is scheduled to report its quarterly financial results later on Wednesday.
Investors will examine the performance of Google Cloud and the company’s spending on artificial intelligence infrastructure.
The results are expected to provide further information about whether demand for AI services and computing capacity is translating into revenue growth.
Google’s TPU business has benefited from commercial agreements with customers, including OpenAI rival Anthropic.
These arrangements have contributed to demand for Google’s proprietary semiconductor technology.
Alphabet Chief Financial Officer Anat Ashkenazi previously indicated that the company expects to recognize a small percentage of revenue associated with TPU sales agreements by the end of 2026.
The majority of revenue from those agreements is expected to be recognized during 2027.
The timing reflects the longer-term nature of some semiconductor supply arrangements and the period over which contracted sales are expected to contribute to Alphabet’s financial results.
OpenAI Develops Custom AI Processor With Broadcom
Alongside its reported interest in Google’s chips, OpenAI is developing its own semiconductor technology.
In June, the company unveiled its first custom artificial intelligence chip, designed in collaboration with Broadcom.
OpenAI said it planned to deploy the processor by the end of 2026 as part of a multigeneration chip development programme.
The initiative represents another approach to securing the computing capacity required for the company’s AI models.
Developing proprietary processors could allow OpenAI to tailor hardware to its specific computing requirements while continuing to use chips supplied by external manufacturers.
The programme also demonstrates the range of semiconductor procurement and development strategies being pursued by major AI companies.
Competition and Commercial Partnerships Continue Across AI Industry
The reported chip purchases illustrate how companies competing in artificial intelligence can also maintain commercial relationships.
Google and OpenAI compete in areas including generative AI models, consumer applications and search-related services.
At the same time, Google Cloud provides computing infrastructure that can support the deployment of OpenAI models.
A direct chip supply arrangement would create another commercial connection between the companies.
The development also reflects the growing importance of semiconductor availability in determining how quickly AI developers can expand their computing operations.
Nvidia remains a major supplier of AI processors, but Google’s TPU sales and custom chip programmes involving companies such as Broadcom demonstrate efforts to diversify hardware options.
Outlook for OpenAI and Google AI Chips
OpenAI’s reported plan to purchase Google’s AI chips would expand an existing commercial relationship that already includes access to Google Cloud services and previously reported TPU rentals.
The proposed transaction has not been confirmed, and no financial terms or purchase volumes have been disclosed.
For Google, direct TPU sales represent an additional opportunity to generate revenue from its semiconductor technology alongside its cloud computing business.
Alphabet expects most revenue from existing TPU sales agreements to be recognized in 2027, with a smaller contribution anticipated before the end of 2026.
Meanwhile, OpenAI is continuing its custom chip development programme with Broadcom, with initial deployment planned before year-end.
The developments highlight the increasing importance of semiconductor supply, computing costs and infrastructure investment as artificial intelligence companies expand their operations.