Latest news with #TPUs
CNA
10 hours ago
- Business
- CNA
OpenAI turns to Google's AI chips to power its products, The Information reports
OpenAI has recently begun renting Google's artificial intelligence chips to power ChatGPT and other products, The Information reported on Friday, citing a person involved in the arrangement. The move, which marks the first time OpenAI has used non-Nvidia chips in a meaningful way, shows the Sam Altman-led company's shift away from relying on backer Microsoft's data centers, potentially boosting Google's tensor processing units (TPUs) as a cheaper alternative to Nvidia's graphics processing units (GPUs), the report said. As one of the largest purchasers of Nvidia's GPUs, OpenAI uses AI chips to train models and also for inference computing, a process in which an AI model uses its trained knowledge to make predictions or decisions based on new information. OpenAI hopes the TPUs, which it rents through Google Cloud, will help lower the cost of inference, according to the report. However, Google, an OpenAI competitor in the AI race, is not renting its most powerful TPUs to its rival, The Information said, citing a Google Cloud employee. Both OpenAI and Google did not immediately respond to Reuters requests for comment. OpenAI planned to add Google Cloud service to meet its growing needs for computing capacity, Reuters had exclusively reported earlier this month, marking a surprising collaboration between two prominent competitors in the AI sector. For Google, the deal comes as it is expanding external availability of its in-house TPUs, which were historically reserved for internal use. That helped Google win customers including Big Tech player Apple as well as startups like Anthropic and Safe Superintelligence, two OpenAI competitors launched by former OpenAI leaders.
Yahoo
10 hours ago
- Business
- Yahoo
OpenAI turns to Google's AI chips to power its products, The Information reports
(Reuters) -OpenAI has recently begun renting Google's artificial intelligence chips to power ChatGPT and other products, The Information reported on Friday, citing a person involved in the arrangement. The move, which marks the first time OpenAI has used non-Nvidia chips in a meaningful way, shows the Sam Altman-led company's shift away from relying on backer Microsoft's data centers, potentially boosting Google's tensor processing units (TPUs) as a cheaper alternative to Nvidia's graphics processing units (GPUs), the report said. As one of the largest purchasers of Nvidia's GPUs, OpenAI uses AI chips to train models and also for inference computing, a process in which an AI model uses its trained knowledge to make predictions or decisions based on new information. OpenAI hopes the TPUs, which it rents through Google Cloud, will help lower the cost of inference, according to the report. However, Google, an OpenAI competitor in the AI race, is not renting its most powerful TPUs to its rival, The Information said, citing a Google Cloud employee. Both OpenAI and Google did not immediately respond to Reuters requests for comment. OpenAI planned to add Google Cloud service to meet its growing needs for computing capacity, Reuters had exclusively reported earlier this month, marking a surprising collaboration between two prominent competitors in the AI sector. For Google, the deal comes as it is expanding external availability of its in-house TPUs, which were historically reserved for internal use. That helped Google win customers including Big Tech player Apple as well as startups like Anthropic and Safe Superintelligence, two OpenAI competitors launched by former OpenAI leaders. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
11 hours ago
- Business
- Yahoo
Oracle Benefits From AI Cloud Service Adoption: A Sign of More Upside?
Oracle's ORCL collaboration with xAI to deploy its Grok models via the Oracle Cloud Infrastructure ('OCI') is expected to further drive momentum in the company's cloud services and license support revenues in the near term. OCI spans domains like compute, databases and AI services, providing end-to-end solutions for enterprise workloads. Oracle's 23 AI database has helped businesses integrate AI solutions by automating workflows and providing flexibility to tailor models to business-specific needs. Oracle had previously demonstrated its ability to host, train and scale various models through partnerships with Cohere, LLAMA 2 and NVIDIA AI Enterprise. The latest partnership with xAI is expected to significantly increase OCI compute, storage and network usage. Additionally, the seamless deployment of Grok models is likely to encourage long-term contract renewals. Looking forward, total cloud revenues are expected to grow 26-30% for the first quarter of 2026, and by over 40% for fiscal 2026. The company also noted that for fiscal 2026, cloud infrastructure revenues are projected to grow even more than 70%, up from 51% in the prior year. Oracle faces tough competition from players like Alphabet GOOGL and Amazon AMZN. Alphabet's Google Cloud invests heavily in custom AI chips called TPUs and recently introduced its latest version, Ironwood. The company recently launched the 'Cloud Wide Area Network,' making Google's private cloud network globally accessible. The recent inclusion of Gemini 2.5 and Flash into Alphabet's Vertex AI Platform is expected to transform enterprise-AI sophistication. Amazon's cloud services are deployed via AWS. Amazon's AI applications like Alexa+ and its latest AI chip, Trainium 2, are delivering massive improvements in performance and efficiency. Amazon's Bedrock recently integrated Anthropic's Claude 3.7 Sonnet and Meta's Llama 4 model family to build high-quality Generative AI applications. The company recently launched a preview version of Amazon Nova Act, designed to help developers break down complex tasks and perform commands in web browsers. ORCL's shares have appreciated 27.7% in the year-to-date period, outperforming both the Zacks Computer and Technology sector's return of 5.5% and the Zacks Computer-Software industry's appreciation of 14.6%. Oracle's shares have also outperformed Alphabet and Amazon in the year-to-date period. While shares of GOOGL dropped 8.4%, AMZN plunged 1.0%. Image Source: Zacks Investment Research Oracle trades at a three-year EV/EBITDA of 26.53X, substantially above the Zacks Computer-Software industry average of 19.86X. ORCL has a Value Score of D. Image Source: Zacks Investment Research The Zacks Consensus Estimate for ORCL's fiscal 2026 revenues is currently pegged at $66.63 billion, indicating 16.08% year-over-year growth. The consensus mark for 2026 earnings is pegged at $6.71 per share, up 1.05% over the past 30 days. This indicates an 11.28% increase from the figure reported in the year-ago quarter. Oracle Corporation price-consensus-chart | Oracle Corporation Quote ORCL currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Inc. (AMZN) : Free Stock Analysis Report Oracle Corporation (ORCL) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
16-06-2025
- Business
- Yahoo
Potential Alphabet (GOOGL) and OpenAI Deal Could Shift Dynamics in AI Race
Alphabet Inc. (NASDAQ:GOOGL) is one of the 10 best tech stocks to buy according to billionaires right now. On Tuesday, June 10, Reuters reported that OpenAI is partnering with Google Cloud to meet its growing need for computing power, citing three sources familiar with the matter. As both these companies are seen as competitors in AI space, this collaboration is a bit surprising, especially, since OpenAI's ChatGPT has long been seen as disruptor for Google's search business. However, the agreement was finalized in May and brings Google into OpenAI's expanding network of infrastructure providers as it scales training and deployment of advanced AI models. Pixabay/Public Domain Google Cloud aims to position itself as a flexible and neutral platform for handling high-performance computing workloads, responding to growing industry demand for infrastructure. As per Reuters, a key factor in securing this agreement was the company's decision to open access to its proprietary Tensor Processing Units (TPUs) for external partners. While one of Reuters' sources mentioned that the deal was finalized in May (after months of discussion), none of the concerned companies has agreed to comment on Reuters' queries. Earlier last week, Wing Aviation LLC, a subsidiary of Alphabet, announced its plan to expand 'Wing' drone delivery to an additional 100 Walmart stores across selected markets. The companies have highlighted this as world's largest drone delivery expansion. On the announcement, Greg Cathey, SVP, Walmart U.S. Transformation and Innovation, stated: 'As we look ahead, drone delivery will remain a key part of our commitment to redefining retail. We're pushing the boundaries of convenience to better serve our customers, making shopping faster and easier than ever before.' Alphabet Inc. (NASDAQ:GOOGL) is the parent company of Google and a pioneer in internet-related services and products, including online advertising technologies, search engines, cloud computing, software, and hardware. The company is also a leading investor in data centers and fiber networks, operating a vast global network of data centers that support its cloud services and other digital offerings. While we acknowledge the potential of GOOGL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Mint
06-06-2025
- Business
- Mint
How Sundar Pichai responded to 'Google's lost... it's over. You're the wrong guy to lead Google' remark
In a candid exchange during a recent podcast with YouTuber and researcher Lex Fridman, Alphabet CEO Sundar Pichai addressed growing public criticism about Google's perceived loss of momentum in the AI race, saying he remains confident in the company's long-term vision and leadership. Responding to a pointed comment —'Google's lost... it's over. You're the wrong guy to lead Google' — Pichai reflected on the strategic decisions he has made as CEO, emphasising the company's commitment to becoming 'AI-first' and responsibly building artificial general intelligence (AGI). 'Obviously, the main bet as a CEO I made was to make sure the company was approaching everything in an AI-first way,' Pichai said. 'We've made sure we put out products that are useful to people. I had a good sense of what we were building internally even during the turbulence last year.' Pichai highlighted several foundational moves made under his leadership, including the merger of Google Brain and DeepMind into the unified Google DeepMind team, a decision he believes has strengthened the company's AI research capabilities. He also referenced Google's early investment in Tensor Processing Units (TPUs) over a decade ago, which he said has been critical in scaling up and training large AI models like Gemini. In his characteristic calm tone, Pichai described his approach to leadership amid criticism. 'I am good at tuning out the noise and separating signal from noise,' he remarked, drawing an analogy to scuba diving. 'Sometimes, you jump in the ocean and it's choppy. But you go just a foot below, and it's the calmest thing in the universe.' He compared running Google to managing an elite football club like Barcelona or Real Madrid — where one rough season does not negate the strength of the squad or the long-term strategy. 'You watch the signals, and while some good feedback may come from the outside, internally you're making a set of consequential decisions. Many may feel inconsequential at the time, but they add up.' Despite challenges, Pichai believes Google is well-positioned in the AI landscape. 'We had to ramp up the TPUs, train Gemini, and scale our compute. To me, it seemed like the biggest opportunity space of the next decade — bigger than what we've seen before,' he said. 'We're set up better than most companies in the world.' The remarks come at a time when tech giants are fiercely competing for AI dominance, and public perception often shifts quickly based on product rollouts and visible innovation. For Pichai, however, the focus remains steady: 'Just keep things moving. We've set up the right teams, the right leaders, and we have world-class researchers.'
