OpenAI says no plans to use Google’s self-developed chips: report

Microsoft (NASDAQ:MSFT)-backed OpenAI has no active plans to use Alphabet unit Google’s (NASDAQ:GOOG) (NASDAQ:GOOGL) tensor processing units, or TPUs, the company said following media reports that the AI startup was planning to use rival Google’s chips to meet growing demand, Reuters reported.

A spokesperson for OpenAI told the news agency that OpenAI is in early testing with some of Google’s TPUs, but it has no plans to deploy them at scale right now, the report added.

Google and OpenAI did not immediately respond to a request for comment from Seeking Alpha.

OpenAI is actively using Nvidia’s graphics processing units, or GPUs, and AMD’s (NASDAQ:AMD) AI chips to power its growing demand, the report noted.

A potential deal for Google’s TPUs could have marked a supplier diversification for OpenAI, which has relied on Nvidia’s (NASDAQ:NVDA) chips in the past to train its AI models and for inference computing. On Monday, analysts from Morgan Stanley said in a research note that potential usage of Google’s chips for inferencing OpenAI’s AI workloads would have been a significant endorsement of Google’s hardware.

Over the weekend, it was reported that OpenAI has started using Google-made AI chips to build its products. However, it was noted that Google was not providing the most powerful TPUs to OpenAI, signaling its plans to use its most advanced versions to power the company’s internal projects, including its own large language model Gemini.

Last month, OpenAI, reportedly, signed a deal with Google Cloud for the AI company’s computing needs.