OpenAI and Google’s cloud deal might give us more insight into the global AI race
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It is not a secret that every company is investing millions and millions of dollars into next-gen hardware like NPUs to develop their AI models. Some of the biggest names in the AI sector, including OpenAI, which made huge waves when it released ChatGPT back in 2022, are Google.
Google is also holding nothing back, and these two giants are competing head-to-head for AI supremacy. However, in a recent turn of events, OpenAI made a deal with Google to utilize its cloud service to fulfill its computing needs. Now, what does that mean for the AI market? Let's find out.
OpenAI and Google collaboration
We've seen chip manufacturing plants overwhelmed with orders as every major company wants the best hardware to train their models; however, OpenAI, in a surprising move, made a deal with its biggest competitor and incorporated the Google Cloud Service to increase and meet the growing demand for better and more computing capacity.
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So, what we think it means is that the lone wolf tactic might be coming to an end if companies are to move their AI models to the next level. Obviously, both parties must benefit from this deal, and the dynamic competition might've driven the two, especially Open AI, since its major supporter was Microsoft, to move forward together.
Now, whether that means that we'll see more collaboration between companies, we think that is certainly on the table, as it is better to compete in the market with more support rather than brave the storm alone.
Google providing its cloud units to OpenAI, besides the latter’s existing infrastructure, makes more sense when you think about what Google's CEO, Sundar Pichai, said in a podcast with Fortune.
“I think all of us are going to do well in this scenario“
Sundar Pichai, Google CEO
The idea that there won't just be one winner in the AI race seems more plausible now that this deal has come to light, and Sundar Pichai also mentioned that one of Google's biggest competitors, which could include OpenAI, xAI, Meta, and Microsoft, “has invited me to a dance.”
Whether this dynamic duo will last, as the biggest threat to Google's search dominance is ChatGPT, and we may or may not see it coming to an end or the terms changing, because at the end of the day, it is all about business.
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