{"id":666666,"date":"2025-06-11T00:00:00","date_gmt":"2025-06-11T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2025\/06\/11\/are-google-and-openai-burying-the-hatchet\/"},"modified":"2025-06-11T00:00:00","modified_gmt":"2025-06-11T00:00:00","slug":"are-google-and-openai-burying-the-hatchet","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2025\/06\/11\/are-google-and-openai-burying-the-hatchet\/","title":{"rendered":"Are Google and OpenAI burying the hatchet?"},"content":{"rendered":"

In a surprising development in the AI arms race, it seems as though rival tech giants <\/strong>Google and OpenAI are exchanging competition for collaboration.<\/strong> According to anonymous sources cited by Reuters<\/a>, OpenAI will be utilizing Alphabet\u2019s Google Cloud service in an attempt to keep up with its growing computing needs. The deal \u2014 finalized in May but reported to have been in works for several months prior \u2014 is an unexpected development according to the newswire, considering OpenAI has been touted as Google\u2019s biggest threat. <\/p>\n

Up goes Google, down goes Microsoft. <\/strong>Following the announcement on Tuesday, Alphabet\u2019s stock increased 2.1%, with Microsoft\u2019s dropping 0.6%. The latter\u2019s cloud computing platform, Microsoft Azure, had been OpenAI\u2019s exclusive cloud computing provider \u2014 and one of its staunchest supporters and investors \u2014 from 2016<\/a> up until January 2025<\/a>, when OpenAI partnered with Oracle and Softbank as part of US President Trump\u2019s Stargate<\/a> project. Ars Technica reports<\/a> that OpenAI had been seeking partnerships away from Microsoft as early as October 2024, noting Microsoft\u2019s inability to supply the AI data center services OpenAI needed.<\/p>\n

The news follows OpenAI\u2019s announcement that its annualized revenue run rate rose to <\/strong>USD 10 bn, up from USD 5.5 bn in 4Q 2024. <\/strong>With ChatGPT\u2019s rising<\/a> popularity, the deal emphasizes OpenAI\u2019s rigorous growth plans, and comes not a second too soon for the emerging AI superpower, who seem to have been dealing with a few power outages as of late<\/a> \u2014 though not for much longer, we would presume.<\/p>\n

Google\u2019s Hail Mary. <\/strong>Google may be the one providing OpenAI with power, but could this partnership be Google\u2019s attempt to stay ahead in a race in which they are no longer effectively competing? In contrast to OpenAI\u2019s rise, Google has found itself falling from grace<\/a> in its attempt to get a leg up on AI \u2014 from its flailing AI Mode search to weekly PR nightmares<\/a> and frequent attempts to decrease headcount<\/a>, it hasn\u2019t been a good year for the California-based tech giant. But this new deal could just be the lifeboat Google has been searching for. Google Cloud generated USD 43 bn in sales in 2024 \u2014 12% of Alphabet\u2019s total revenue \u2014, and with OpenAI fresh on the client list, joining Apple<\/a>, Alphabet may have just found its way out of the mud, likely attracting more AI startups in the process.<\/p>\n

But can Google walk the walk? <\/strong>OpenAI\u2019s departure from Microsoft was due to the latter\u2019s inability to supply enough power consistent with OpenAI\u2019s growth, but Google might be facing the same problem \u2014 1Q 2025 saw Google Cloud unable to meet customer demand. While the deal might be mutually beneficial for the time being, the Alphabet subsidiary could be feeding a hand that will eventually bite back. Reuters notes that selling computing power both reduces Google\u2019s supply of computer chips, all whilst propping up rivals, begging the question: Who will Google prioritize: itself, or its clients? It\u2019s too soon to tell, but we expect the company that has implemented a \u201cif you don\u2019t like it, leave\u201d and all-or-nothing policy<\/a> for publishers, clients, and users as of late will be putting its ego first.<\/p>\n","protected":false},"excerpt":{"rendered":"

OpenAI will be utilizing Alphabet\u2019s Google cloud service in an attempt to keep up with its growing computer needs.<\/p>\n","protected":false},"author":1,"featured_media":666667,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[7215],"tags":[7094,633,638,1143,8370,639],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-666666","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-for-your-commute","tag-ai","tag-enterprisepm","tag-for-your-commute","tag-google","tag-openai","tag-technology","wpautop","entry"],"acf":{"mongo_id":"67f4a9b5-ac01-4cf2-8b8c-565d8c78aa1b","order":"3","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2025\/6\/555.jpg","photo_position":"above","homepage_title":"","full_issue_title":"","related_issue":[666661],"teaser":"OpenAI will be utilizing Alphabet\u2019s Google cloud service in an attempt to keep up with its growing computer needs.","voice_url":"https:\/\/s3.us-east-1.amazonaws.com\/ent.news\/audio\/2025\/6\/.a1cd2910-b5ec-4598-b1c7-aed815137210.mp3"},"yoast_head":"\nAre Google and OpenAI burying the hatchet? - EnterpriseAM Egypt<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/egypt\/2025\/06\/11\/are-google-and-openai-burying-the-hatchet\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Are Google and OpenAI burying the hatchet?\" \/>\n<meta property=\"og:description\" content=\"OpenAI will be utilizing Alphabet\u2019s Google cloud service in an attempt to keep up with its growing computer needs.\" \/>\n<meta property=\"og:url\" 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