OpenAI Picks Google Cloud for AI Models Despite Microsoft Contracts: Puts Competition Aside

November 3, 2026

OpenAI Picks Google Cloud for AI Models Despite Microsoft Contracts: Puts Competition Aside

OpenAI isn’t trying to win over everyone. The clearest sign of that is its decision to host its artificial intelligence models on Google’s cloud — a move that comes after years of rivalry with Google and even while OpenAI still maintains ties with Microsoft.

With this change, OpenAI aims to broaden its foothold in the enterprise developer market rather than focus solely on consumer-facing users. By placing its models on Google Cloud, the company will have a presence across the three leading global cloud providers: Microsoft Azure, Amazon Web Services, and now Google Cloud.

“Google Cloud’s long-term investment in machine learning and artificial intelligence has made it an attractive destination for AI workloads and for the developers and data scientists who build them,” the company said in a statement.

Less than six months ago, OpenAI’s agreement with Microsoft was no longer exclusive. After that arrangement ended, OpenAI struck a deal with AWS and has now reached an agreement with Google to host its models and its coding tools.

Since the early days of the AI development race, OpenAI has been one of the most prominent players. But Google — with its Gemini models — has closed the gap, including in the enterprise arena, where companies are increasingly considering Google as a serious option alongside services like ChatGPT or offerings from Anthropic.

Even so, this commercial partnership will add to Google’s revenue — a welcome boost for its cloud division, which has been growing steadily in recent years.

According to second-quarter figures for this year, revenue in Google’s cloud segment jumped 82%, up from a 63% increase in the first quarter. That growth was driven in part by strong demand for AI models and for custom-designed chips.

Amazon and Microsoft also reported growth in their cloud businesses, but not at Google’s pace: in the second quarter, their cloud revenue rose by 37% and 42%, respectively.

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