TheThis dealpartnership exposesmakes concerningperfect vulnerabilitiesbusiness insense OpenAI'sfor strategyboth companies. RelyingOpenAI ondesperately aneeds directto competitordiversify foraway criticalfrom infrastructureexpensive createsNvidia obviouschips risks, and GoogleMicrosoft's decisionlimited tocloud withholdcapacity, itsespecially mostwith powerfulChatGPT's chipsmassive showsuser they'rebase notdriving trulyup committedinference partnerscosts. ThisGoogle's moveTPUs couldoffer backfirea ifmore Googlecost-effective decidesalternative tothat cutcould accesssave orOpenAI prioritizebillions itswhile ownalso Geminigiving modelsGoogle a high-profile customer win.
The deal exposes concerning vulnerabilities in OpenAI's strategy. Relying on a direct competitor for critical infrastructure creates obvious risks, and Google's decision to withhold its most powerful chips shows they're not truly committed partners. This move could backfire if Google decides to cut access or prioritize its own Gemini models.