OpenAI reportedly plans to buy Google's AI chips to expand its computing capacity

Compiled from reports by Reuters, Investing.com and Finimize. See the original articles linked below.

OpenAI plans to buy artificial intelligence chips from Google, according to a report by The Information published on Tuesday, October 27, 2026. Reuters, which relayed the report, said The Information cited a person familiar with the matter.

What was reported

Investing.com wrote that the purchase would help OpenAI expand its computing capacity and diversify where its processing power comes from. The chips in question are Google's Tensor Processing Units, or TPUs. Investing.com described them as an alternative to the graphics processing units, or GPUs, from Nvidia that dominate AI computing. Investing.com quoted the report as saying final terms of a potential deal have not been determined.

Reuters said the report gave no financial terms. It also wrote that Google did not immediately comment and that OpenAI declined to comment.

Existing ties between the companies

According to Reuters, the report points to closer links between OpenAI and Google, two companies that compete in AI products and search but have increasingly struck commercial arrangements. Reuters noted that OpenAI said last week it would offer its frontier AI models through Google Cloud. It also recalled its own June 2025 report that OpenAI had begun renting Google's AI chips.

Reuters wrote that OpenAI is already a major buyer of Nvidia GPUs. Finimize likewise described the reported plan as a way for OpenAI to reduce its dependence on Nvidia, and said more chip suppliers could lower the risk of shortages and improve OpenAI's pricing leverage.

OpenAI's own chip

Reuters reported that OpenAI unveiled its first custom AI chip in June, designed with Broadcom, and said it planned to deploy it by the end of this year. Investing.com gave the name of that chip as Jalapeno and presented it as part of a wider industry move toward custom silicon and less reliance on outside suppliers.

Google's TPU business

Reuters wrote that TPUs have gained ground as a cheaper alternative to Nvidia's chips, and that Google began selling them directly to some customers this year. It said deals with customers including Anthropic have lifted demand. According to Reuters, Alphabet chief financial officer Anat Ashkenazi has said a small share of TPU sales revenue is expected to be recognised by the end of this year, with most of it in 2027. Finimize made a similar point about timing, saying such deals may take a while to appear in reported revenue.

Reuters added that Amazon, Microsoft and Alphabet plan to spend up to $600 billion combined on AI infrastructure this year. It said Alphabet was due to report quarterly results later on the same day, with investors watching whether AI spending is driving growth in cloud revenue.

Sources

This article was compiled with AI assistance from the reports listed above and reviewed by GMA before publishing.