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American Focus > Blog > Economy > Alphabet (GOOGL) Lands Surprise Win as OpenAI Picks Google Cloud for AI Expansion
Economy

Alphabet (GOOGL) Lands Surprise Win as OpenAI Picks Google Cloud for AI Expansion

Last updated: June 13, 2025 1:10 am
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Alphabet (GOOGL) Lands Surprise Win as OpenAI Picks Google Cloud for AI Expansion
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Alphabet Inc. (NASDAQ:GOOGL) has recently made headlines as OpenAI, a major player in the artificial intelligence space, has chosen Google’s cloud service to meet its growing computing needs. This surprising collaboration between competitors underscores the strategic importance of pooling resources to advance AI adoption.

The deal between OpenAI and Google was reportedly in discussion for several months before being finalized in May. The increasing demand for computing power to train and deploy AI models has led OpenAI to diversify its compute sources beyond its existing partnership with Microsoft.

Google’s cloud unit will now provide additional computing capacity to support OpenAI’s AI models, marking a significant victory for the company. Scotiabank analysts have described the development as “somewhat surprising,” noting the growth opportunities for Google’s Cloud unit while also highlighting competition from ChatGPT.

Despite the potential for Alphabet Inc. (GOOGL) as an investment, there are other AI stocks that offer greater upside potential with less downside risk. For investors seeking undervalued AI stocks poised to benefit from Trump-era tariffs and the onshoring trend, a free report on the best short-term AI stock is available.

In conclusion, the collaboration between Alphabet Inc. and OpenAI highlights the importance of strategic partnerships in the AI space. While Google’s cloud unit stands to benefit from the deal, competition from ChatGPT poses a potential threat to Google’s search dominance. Investors looking to capitalize on the AI sector should consider a diverse range of AI stocks with strong growth potential and minimal downside risk.

See also  FIFA Women's World Cup: Netflix lands deal to broadcast 2027 and 2031 editions plus documentary series
TAGGED:AlphabetcloudexpansionGOOGLGoogleLandsOpenAIpicksSurprisewin
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