Google, Nvidia Collaborate On AI Expansion In Strategic Play Against Microsoft

Thomas Kurian, CEO of Alphabet Inc GOOG GOOGL Google Cloud, plans to ramp up the company's artificial intelligence technology enterprise offering at Google’s annual cloud conference in San Francisco.

Google looks to offer tools that can help draft emails or summarize lengthy documents stored in the cloud, intensifying rivalry with the second-largest cloud provider, Microsoft Corp MSFT and ChatGPT creator OpenAI, the Wall Street Journal reports.

Also Read: Nvidia Vulnerable To In-House AI Chip Production By Google, Meta, Microsoft, Amazon

Kurian, alongside Nvidia Corp NVDA CEO Jensen Huang, will announce that a large cluster of Nvidia’s newest AI chips, the H100, will generally become available to Google Cloud customers, sampling a growing range of AI offerings, the report said. 

Google is also showcasing uses of its technology, including a planned GE Appliances app that uses Google’s AI models to create recipes based on the food in a customer’s fridge.

Google’s move illustrates CEO Sundar Pichai’s attempts to reduce dependence on its cash-cow search engine and growth in the cloud business. 

Pichai had already waged an open war, naming Gemini as its answer to the AI system behind OpenAI’s breakout ChatGPT.

Google’s infrastructure and software offerings clocked $32 billion in annual sales, about 10% of total revenue. 

The cloud unit turned a quarterly operating profit for the first time this year, though still trailing behind Amazon.com Inc AMZN's AWS and Microsoft Azure.  

Google will commercialize its current large PaLM 2 model, which powers its generative AI features. 

Google also eyes the commercialization of a suite of AI-powered tools for corporate Gmail accounts and other workplace software products. The tools will cost an extra $30 a month per person, matching the price of Microsoft’s flagship 365 suite.

Kurian said Google Cloud resources are capable of meeting customer requirements. Google has shifted the mix of chips in its data centers toward processors capable of handling AI applications.

GOOG Price Action: GOOG shares traded higher by 0.42% at $132.35 premarket on the last check Tuesday.