$Alphabet(GOOGL)$ OpenAI is planning to buy Google's AI chips.
OpenAI is already one of $NVIDIA(NVDA)$ 's biggest GPU customers. Adding Google's TPUs to its infrastructure would give OpenAI more negotiating leverage against Nvidia, while also securing an alternative compute pipeline for running its next-generation frontier models. Reuters reported that the ChatGPT maker had started renting Google's AI chips, and now they plan to buy them outright.
Alphabet expects to recognize a small portion of this TPU sales revenue by the end of 2026, with the vast majority hitting the books in 2027. Some analysts estimate $Alphabet(GOOG)$ 's direct TPU sales could reach up to $51B by 2027.
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