Focusing on the diversification of AI computing power! OpenAI and Alphabet have reached a cloud service agreement

According to reports, OpenAI plans to introduce Google (GOOGL.US) cloud services to meet its growing computing power needs. It is reported that the cooperation agreement has been discussed for several months and was finalized in May this year. For a long time, Microsoft (MSFT.US) has been a major supporter of OpenAI, with both parties closely collaborating on multiple projects. Until January of this year, Microsoft was the exclusive cloud service provider for OpenAI. Therefore, this cooperation between OpenAI and Google is surprising, as OpenAI and Google have long been direct competitors in the field of artificial intelligence (AI). This cooperation marks a strategic shift for OpenAI in acquiring computing resources, demonstrating its urgent need for diversified computing sources. Analysts believe that for OpenAI, the partnership with Google will provide additional computing power support, helping it further advance the training and deployment of AI models. As AI technology continues to develop, the demand for computing power is growing exponentially, and a single source of computing power may not meet its long-term development needs. This cooperation will make OpenAI more flexible in ensuring computing power, helping it maintain a leading position in the AI field. Additionally, for Google Cloud, partnering with OpenAI will bring new business growth opportunities. However, Google also faces certain challenges, as it needs to balance providing external cloud services while ensuring that its own AI research and development work is not compromised, preventing any leakage of core technologies or impacts on its own AI projects. It is worth mentioning that Morgan Stanley analyst Brian Nowak and his team recently released a research report indicating that the cooperation agreement between Google Cloud and OpenAI is significant. On one hand, this is expected to accelerate the growth of Google Cloud's business, which is currently not fully valued at approximately 18 times the expected price-to-earnings ratio for 2026. On the other hand, it sends an important signal that Google is confident in its long-term search position. The report points out that if Google were truly concerned about threats to its search business, it would not be willing to provide critical computing power to potential competitors. This indicates that Google has a better understanding of its business health than anyone outside, and it is very confident in its user base, data assets, and pace of innovation