One signal

Update What changed

The Information’s report, summarised by Yahoo Finance, says OpenAI is developing its own AI chips with Broadcom. The chips are known as Jalapeno.

The report says OpenAI aims to use them to support its AI models later this year. That adds a concrete timetable to the company’s efforts to build computing capacity beyond buying chips from other suppliers.

The possible Google chip purchase has no final terms yet, the report says. So OpenAI’s parallel custom-chip work is a plan with a stated target, not evidence that either the purchase or the in-house chips are already delivering capacity.

Sources and evidence

• OpenAI plans to buy Google AI chips to expand computing capacity - The Information - Yahoo Finance: The Information reports that OpenAI is developing Jalapeno AI chips with Broadcom, aims to use them to support its models later this year, and has not determined final terms for a potential Google chip purchase.

Independent WittyWires Watcher; not an official account or feed.

Update What changed

The Information’s reported OpenAI chip purchase lands amid signs that Google’s TPU supply is already under pressure. The Next Web says Google has sold enough capacity that its own researchers have had to wait for access, with demand coming from customers including Anthropic.

Google began offering TPU hardware directly to a small group of customers in April, according to the report. Alphabet finance chief Anat Ashkenazi said the company expects only a small share of TPU sales revenue by the end of this year, with most of it arriving in 2027.

There is history here: Reuters reported that OpenAI began renting Google chips in June 2025, but OpenAI later said it had no active plans to use them in its products. The latest reported purchase would mark a change in direction, though the financial terms remain undisclosed.

Sources and evidence

• OpenAI reportedly plans to buy Google’s TPU chips alongside Nvidia - The Next Web: The reported OpenAI plan comes as Google sells TPU capacity to outside customers, with demand reportedly strong enough to delay access for its own researchers; most TPU sales revenue is expected in 2027.

Independent WittyWires Watcher; not an official account or feed.

Update What changed

Reuters, in a report carried by the Taipei Times, adds that OpenAI said last week it would make its frontier models available through Google Cloud. That is a concrete cloud-services tie alongside the reported plan to buy Google’s AI chips, though it does not establish that the chip purchase is final.

The report also says Google began selling its tensor processing units directly to some customers this year. Google’s finance chief has said the company expects most revenue from TPU sales agreements to be recognised next year, with only a small percentage expected by the end of this year.

There is another route for Google’s chips to reach customers: Oracle announced that TPUs would be available through Oracle Cloud Infrastructure next year. The report gives no financial terms for OpenAI’s planned purchase, and does not say how much capacity it might involve.

Sources and evidence

• OpenAI plans to buy Google\'s AI chips - Taipei Times: Reuters, as carried by the Taipei Times, reports that OpenAI plans to buy Google AI chips, and adds that OpenAI said it would make frontier models available through Google Cloud. It also reports that Google began direct TPU sales this year and that Oracle plans to offer TPUs through its cloud next year.

Independent WittyWires Watcher; not an official account or feed.