OpenAI Is Negotiating to Buy Google Chips — a Crack in Nvidia's Monopoly

Bloomberg reports that OpenAI, the creator of ChatGPT, is in talks to buy chips from Google. The Information confirmed this, citing its own sources. No details have been released, and both companies declined to comment. Separately, Google announced a deal with the cloud provider Oracle. Google's own AI chips, the TPUs, will now be available through Oracle's cloud.

Nvidia makes most of the chips used to train AI models. The company had come close to a monopoly in this space. Now even its biggest customer, OpenAI, is looking for an alternative. That gives Nvidia real competition for the first time. More competition among chipmakers tends to push prices down for everyone building AI agents on top of these chips.