Those comments came shortly after analysts peppered Pichai and other Google executives with questions about how AI would have the ability to interfere with its core search business and why Google is spending an enormous amount of capital expenditures this year to catch up in the AI race.
Almost two years since the launch of ChatGPT, Google has now shifted its focus squarely on developing leading AI models and products that can compete with OpenAI.
ChatGPT comes as a major threat to Google Search, but the OpenAI deal marks one of the largest new customers from Google Cloud. It’s a hard relationship for Google to navigate. OpenAI may also use Google’s cloud infrastructure and chips to upend the company’s core Search product.
Also worth mentioning is that earlier this month, OpenAI added Google Cloud to a public list of suppliers that it uses for cloud computing services, alongside Microsoft and Oracle. Reuters also has reported about this matter, saying that in June, OpenAI was considering tapping Google Cloud for extra computational power.
Google Cloud revenue also soared in the second quarter of 2025 to $13.6 billion, up from $10.3 billion in the same period of time from last year. Google also attributes a significant chunk of that growth to the Google Cloud Platform.
Google Cloud is still a small business relative to Google Search, yet it still seems to be growing in the AI era. Multiple AI labs have tapped Google Cloud as a cloud computing partner, including Anthropic, Safe Superintelligence, Fei-Fei Li’s World Labs, and now OpenAI.
In the earnings call, Pichai also noted that the company has been successful at winning deals with large AI labs due to its large supply of Nvidia GPU chips and in-house TPU chips, reported TechCrunch.
