The agreement between OpenAI and Google Cloud marks a significant change in the competitive landscape of AI and reduces OpenAI's dependency on Microsoft.
Partnership Between OpenAI and Google Cloud
The agreement, finalized in May 2025, resulted from months of negotiation and represents an important step for OpenAI in seeking to diversify its computing infrastructure, which had previously relied entirely on Microsoft Azure. It has been noted that Google and OpenAI had discussed this agreement for a long time but were previously unable to finalize it due to exclusive arrangements with Microsoft.
Impact on the Stock Market
Following the announcement of the partnership, shares of Google’s parent company, Alphabet, rose by 1.96% to $181.11. This positive movement was driven by investor expectations. Meanwhile, Microsoft’s shares fell by 0.79% despite strong overall market performance.
Infrastructure Arms Race Among Hyperscalers
The three major hyperscale companies, Google, Microsoft, and Amazon, continue to ramp up infrastructure investments to meet the growing demand for AI. Google has planned a $75 billion investment for 2025, while Microsoft and Amazon have announced investment plans of $80 billion and $100 billion, respectively. This indicates high competitiveness in the cloud technology sector.
The OpenAI agreement with Google Cloud represents a significant move toward greater independence in cloud services, which could redistribute power in the AI market.
