Alphabet(US:GOOGL) Zhi Tong Cai Jing·2025-06-12 06:40Group 1 - OpenAI plans to utilize Google's cloud services to meet its increasing computing power demands, marking a strategic shift in its resource acquisition approach [1] - The collaboration with Google comes after a long-standing partnership with Microsoft, which was OpenAI's exclusive cloud service provider until January of this year [1] - This partnership is seen as a response to the exponential growth in computing power needs driven by advancements in AI technology, allowing OpenAI to diversify its computing sources [1] Group 2 - Morgan Stanley analyst Brian Nowak highlighted the significance of the partnership, suggesting it could accelerate growth for Google Cloud, which is currently undervalued at approximately 18 times the expected earnings for 2026 [2] - The collaboration signals Google's confidence in its long-term search position, indicating that if Google were genuinely concerned about threats to its search business, it would not provide critical computing resources to a potential competitor [2] - The report emphasizes that Google possesses a strong understanding of its business health, user base, data assets, and innovation pace, reflecting its confidence in the future [2]