Why Did OpenAI Just Team Up With Its Rival Google?

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Hey everyone,

Picture this: OpenAI just asked Google—their biggest rival—to help them train AI models. It's like your ex asking to borrow your car for dates with other people.

OpenAI: "Hey Google, I know ChatGPT is trying to murder your search business, but... wanna be my cloud provider?"

Google: "This is awkward."

OpenAI: "We'll pay you billions."

Google: "Deal."

This is what really happened, and we’re going to talk about it in today’s Spotlight.

What’s inside today’s newsletter:

• 🌐 Tech Pulse

• 🛠️ Build of the Day: how I made a budget NAS with a Raspberry Pi 4 (and you can too)

• 🔐 Prompt Vault: The 1-Minute Market Researcher

• 🔧 New Tools on the Block

• 🔎 Spotlight: Why Did OpenAI Just Team Up With Its Rival Google?

• ✅ To-dos

🌐 Tech Pulse

• Senate Overwhelmingly Rejects AI Law Moratorium

  A proposal to penalize states that regulate AI was defeated 99-1 in the Senate, signaling strong bipartisan resistance to federal preemption of state AI laws. The debate underscores ongoing tensions between tech regulation and innovation

• Google’s Veo 3 Hints at Playable World Models

  Google DeepMind’s CEO teased that the new Veo 3 video-generating model could be a step toward “playable world models,” potentially opening new frontiers in AI-driven simulation and gaming

• OpenAI Condemns Robinhood’s “OpenAI Tokens”

  OpenAI publicly distanced itself from Robinhood’s sale of “OpenAI tokens,” clarifying that these tokens are not equity in the company and are not endorsed by OpenAI
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🛠️Build of the Day

Idea: how I made a budget NAS with a Raspberry Pi 4 (and you can too)
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This week’s AI shortcut to save time or spark action.

🧠 Prompt Name: The 1-Minute Market Researcher
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🔎 Spotlight: Why Did OpenAI Just Team Up With Its Rival Google?

So OpenAI just did the corporate equivalent of asking their ex to help them move out. After being exclusive with Microsoft since 2019, they're now cozying up to Google Cloud because apparently Microsoft wasn't giving them servers fast enough.

The tea: OpenAI hit $10 billion in annual revenue and suddenly needed MORE computing power. Microsoft's like "babe, we've invested billions in you!" But OpenAI's response? "It's not you, it's me... I need to diversify."

Here's what's actually happening:

OpenAI signed with Google Cloud in May after months of secret negotiations

They're also flirting with Oracle and SoftBank in that $500 billion Stargate project

They're building their own chips (because why depend on anyone?)

Microsoft and OpenAI are now "renegotiating" their relationship status

The plot twist? Google's DeepMind competes directly with OpenAI, and ChatGPT is basically trying to murder Google's search business. But Google's CEO recently said the AI race "may not be winner-take-all." Translation: "We're all making too much money to care about pride."

Google Cloud made $43 billion last year, and they're positioning themselves as the "neutral" provider using their fancy TPU chips. It's like being Switzerland in an AI war, except Switzerland is actively selling weapons to both sides.

Bottom line: In Silicon Valley, your biggest enemy today is your cloud provider tomorrow. Peak capitalism, folks.

Source: ARCtechnica

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—Harman

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