Adam Spatacco, The Motley Fool
5 min read
In This Article:
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Throughout the AI revolution, OpenAI has relied heavily on Microsoft's Azure cloud platform to supply compute power.
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In recent months, OpenAI has been seeking alternatives to Microsoft -- most recently choosing to partner with Google.
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Working with OpenAI is a major win for Google, but I see a data center infrastructure service provider as an even bigger winner from this deal.
While Nvidia, Palantir Technologies, and Tesla consistently find their names in headlines regarding artificial intelligence (AI), I would argue that one company that dwarfs the attention garnered by big tech is OpenAI -- the start-up that kicked off the AI revolution in the first place.
Recently, OpenAI sent shockwaves around the AI landscape yet again. This time, however, it wasn't because the ChatGPT developer released another groundbreaking product aimed at its rivals.
Rather, investors learned that OpenAI is teaming up with ... Alphabet. Below, I'm going to detail why the partnership between OpenAI and Alphabet is such a big deal.
Moreover, I'll break down which AI data center stock I think is poised to benefit most from this deal. Let's dig in.
You may recall that when OpenAI emerged a few years ago, Microsoft was fast to partner with the company. More specifically, Microsoft plowed $10 billion into OpenAI as part of a strategic investment. One of the cornerstones of this deal was integrating ChatGPT into Microsoft's cloud platform, Azure. Throughout their partnership, OpenAI's compute infrastructure for training and inferencing was primarily supported by Microsoft. With Google entering the picture, however, those dynamics have changed.
OpenAI is branching out beyond Microsoft and now leveraging the Google Cloud Platform (GCP) to complement Azure for compute resources. While this is a huge win for Alphabet's cloud business -- which rivals both Azure and Amazon Web Services (AWS) -- I see an even bigger winner emerging from this partnership.
While Nvidia, Advanced Micro Devices, and Broadcom have been critical sources of high-performance chipsets for data centers throughout the AI revolution, a new player is emerging as a key resource in the space.
CoreWeave (NASDAQ: CRWV) provides critical infrastructure services to AI developers through a cloud-based model. Companies that may not have the time or financial resources to acquire graphics processing units (GPU) from Nvidia and its peers can essentially rent them from CoreWeave's cloud-based infrastructure.
