The Strategy Supporting the “Competition”: Why Pichai is “Excited” About the Google Cloud × OpenAI Partnership
In July 2025, Google CEO Sundar Pichai stated that he is “very excited” about the partnership in which Google Cloud will support OpenAI as a cloud infrastructure provider. This article explains the background, objectives, and impact of this partnership, incorporating expert perspectives and concrete examples.
1. Background and Purpose of the Partnership
1-1. OpenAI’s Cloud Dependency and Scaling Needs
Due to the explosive adoption of ChatGPT, OpenAI has faced shortages in GPU infrastructure supply and rising costs. By utilizing Google Cloud in addition to its existing Microsoft Azure setup, OpenAI aims to establish a multi-cloud strategy to diversify risks and ensure stable supply.
1-2. Google Cloud’s Hardware Strengths
Google has deployed its proprietary TPUs (Tensor Processing Units) globally, alongside a vast supply of NVIDIA GPUs. OpenAI can leverage these to build efficient training and inference environments. Deployment in APAC hubs such as Tokyo and Singapore is also anticipated.
2. CEO Pichai’s Remarks and Their Significance
2-1. The True Meaning of “Very Excited”
During the earnings call, Pichai emphasized, “Google Cloud has a history of being an open platform that supports excellent startups and AI labs. We want to continue to invest in and grow this relationship.”
2-2. A Relationship That Is Attractive Precisely Because They Are Competitors
While it may seem contradictory at first glance, the bold strategy of “supporting a competitor like OpenAI” serves as the perfect proof of Google Cloud’s reliability and scale. This structure is similar to the growth seen in past partnerships, such as the one with Yahoo.
3. Cloud Growth in Numbers
3-1. Background of Rapid Revenue Growth
In the second quarter of 2025, Google Cloud revenue reached $13.6 billion, a 32% increase year-over-year. OpenAI’s sophisticated usage has contributed to this growth.
3-2. Expansion of Capital Expenditure
Google as a whole has increased its capital expenditure for the year from $75 billion to $85 billion. Of this, $10 billion is allocated to cloud and AI infrastructure, and the collaboration with OpenAI is one of those strategic investments.
4. Ripple Effects on the Industry and Competitive Landscape
4-1. The Spread of Multi-Cloud Strategies
OpenAI’s move to distribute its workload across Azure, Google Cloud, Oracle, and CoreWeave will likely become a symbolic strategy for future AI companies to mitigate cloud dependency risks.
4-2. Pressure on Microsoft Azure
The fact that OpenAI is working on Google's specialized TPU infrastructure could put even greater competitive pressure on Azure, potentially acting as a trigger to prompt reviews of GPU supply capacity and pricing.
5. Points to Watch Moving Forward
5-1. Expansion of Technical Collaboration
In the future, OpenAI may move toward model optimization using Google's TPUs and strengthen integration with services like Vertex AI. The efficiency in performance and cost on TPUs is worth noting.
5-2. Within the Scope of Regulation and Antitrust Laws
Google is already dealing with antitrust litigation. Regulators may evaluate whether this partnership impacts competition in the cloud market or strengthens control over AI infrastructure.
5-3. Balancing with Google's Own AI Competitiveness
The structure involves OpenAI utilizing models trained on Google Cloud to challenge Google's own search and chat AI (Gemini and AI Overviews). Behind Mr. Pichai's statement that he is “very excited” must be a strong intention to accelerate his own company's AI evolution.
The partnership between Google and OpenAI may seem like a “strange relationship” at first glance, but it is a logical strategy for the cloud scale, efficiency, and cost optimization essential in the AI era. This partnership brings a trend of multi-cloud strategies to the entire industry, potentially creating a new ecosystem where competition and cooperation merge. The conviction in such a future is likely the background behind Mr. Pichai saying he is “very excited.”
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