ChatGPT maker OpenAI is planning to buy artificial intelligence chips from Google, according to a report by technology publication The Information, in a move that could chip away at Nvidia’s dominance of the AI hardware market.
The report, published late on Tuesday and citing a person familiar with the matter, says OpenAI intends to purchase Google’s Tensor Processing Units (TPUs). OpenAI already rents TPUs through Google Cloud, a practice it began in June 2025, but buying them outright would mark a major step up in the relationship. Neither company has confirmed the plan. OpenAI declined to comment, and Google did not respond to requests for comment, according to 24/7 Wall St.
Why It Matters for Nvidia
Nvidia’s graphics processing units (GPUs) power most of the world’s AI systems, and OpenAI is one of its biggest customers. Nvidia chief executive Jensen Huang has reportedly said OpenAI committed to spend around $600 billion on Nvidia servers through 2030. In August, Nvidia also agreed to provide up to $105 billion in credit support for an OpenAI data centre in Ohio.
A move by OpenAI to buy Google’s chips suggests the AI leader wants more than one supplier, both to cut costs and to secure enough computing power as demand keeps growing. Asian business outlet The Asia Business Daily summed up the mood with the headline: “Nvidia Chips Are Too Expensive.”
Huang has played down concerns. He said he is “very confident that they’re going to be customers and partners of ours for a very long time.”
A Win for Google
For Google, the deal would be a big boost to its effort to sell its in-house AI chips to other companies. Google Cloud revenue grew 82% to $24.77 billion last quarter, and CNBC reported this week that Google is changing its cloud strategy by enlisting partners to sell more of its AI chips.
Markets reacted calmly. Alphabet shares closed up about 1.2% at $320.58, while Nvidia rose 0.9% to $217.94.
A Change of Heart
The report marks a shift from OpenAI’s position a year ago, when it said it had “no specific plans to use TPUs at present.” Since then, the company’s need for computing power has grown enormously as it trains bigger AI models and serves hundreds of millions of ChatGPT users.
What It Means for Africa
The global race for AI chips affects how quickly and cheaply AI services reach users in Nigeria and across Africa. More competition among chip makers could eventually lower the cost of AI tools that businesses, students and developers on the continent rely on.
Sources: The Information via 24/7 Wall St. and BusinessWorld, The Asia Business Daily, CNBC, Bloomberg. Image: Wikimedia Commons (file photo of a Google TPU).