By Daniel Sparks
Publication Date: 2026-10-29 00:37:00
OpenAI plans to buy Google’s artificial intelligence (AI) chips, The Information reported on Tuesday, Oct. 27, citing someone familiar with the matter. Reuters, which carried the report, said no financial terms or other details were disclosed. OpenAI declined to comment.
That looks like bad news for Nvidia (NVDA -1.18%). OpenAI is one of the largest buyers of Nvidia’s graphics processing units (GPUs), and Alphabet’s (GOOGL +1.34%)(GOOG +1.60%) Google builds the best-known alternative, its tensor processing units (TPUs).
Yet the stock hardly moved. Nvidia shares were little changed on Wednesday morning as of this writing, around $218. Tuesday’s close of $217.94 had already put them about 9% off their Oct. 6 record of $239.24.
Should investors sell Nvidia stock on the news? I’d argue the report says less than its headline implies. It describes OpenAI adding chips while Nvidia can’t make enough of its own.
Image source: Nvidia.
A plan, not a purchase order
OpenAI has used Google’s chips before. Reuters reported in June 2025 that OpenAI had begun renting Google’s TPUs, but OpenAI said days later that it was just in early testing with some of them and had no plans to deploy them at scale. What’s new is ownership: OpenAI would reportedly buy the chips rather than rent time on them, and Google started selling TPUs straight to some customers this year.
Notably, the report, as Reuters relayed it, didn’t say OpenAI is cutting back on Nvidia. And OpenAI’s Nvidia plans are big.
In…