OpenAI reportedly planning to build its first AI chip in 2026
TechCrunchOCT 2024
Report: OpenAI Using Google's AI Chips to Power ChatGPT
Above: OpenAI's logo is displayed on a smartphone screen with the Google logo in the background. Image copyright: Li Hongbo/VCG/Getty Images
The Spin
Pro-establishment narrative
This partnership makes perfect business sense for both companies. OpenAI desperately needs to diversify away from expensive Nvidia chips and Microsoft's limited cloud capacity, especially with ChatGPT's massive user base driving up inference costs. Google's TPUs offer a more cost-effective alternative that could save OpenAI billions while also giving Google a high-profile customer win.
Establishment-critical narrative
The deal exposes concerning vulnerabilities in OpenAI's strategy. Relying on a direct competitor for critical infrastructure creates obvious risks, and Google's decision to withhold its most powerful chips shows they're not truly committed partners. This move could backfire if Google decides to cut access or prioritize its own Gemini models.