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Google Resolves Global Service Outage Affecting Multiple Platforms

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Alphabet’s Google announced on Thursday that it had resolved a brief global outage that disrupted several of its core services, including Google Chat, Google Meet, Gmail, Google Calendar, Google Drive, Google Cloud Search, Google Tasks, and Google Voice.

The disruption also impacted third-party platforms reliant on Google Cloud infrastructure, such as music streaming service Spotify and messaging app Discord, as well as Snapchat. The outage began around 1:50 p.m. ET and caused widespread service interruptions across multiple regions.

At the peak of the outage, tracking website Downdetector.com recorded approximately 46,000 outage reports for Spotify and nearly 11,000 reports for Discord in the U.S. alone. Google Cloud’s engineering teams worked swiftly to mitigate the issue, and by 6:18 p.m. ET, outage reports had significantly decreased to just over 1,000 for Spotify and around 200 for Discord.

Google stated it will publish a detailed analysis after completing an internal investigation into the incident.

CoreWeave Gains Role in Google-OpenAI Cloud Deal to Supply AI Computing Power

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CoreWeave, a specialized cloud computing company built on Nvidia GPUs, has become a key provider in Google’s new partnership with OpenAI, sources told Reuters. Under the deal, CoreWeave will supply computing capacity to Google Cloud, which will then sell these resources to OpenAI to support growing demand for AI services such as ChatGPT. Google will also contribute some of its own computing infrastructure directly to OpenAI.

This arrangement underscores the evolving relationship between major cloud hyperscalers like Google, Microsoft, and Amazon and emerging “neocloud” providers like CoreWeave, which focus heavily on AI workloads. CoreWeave went public in March and already has a significant presence in OpenAI’s infrastructure, holding a five-year $11.9 billion contract and an equity investment of $350 million from OpenAI.

The partnership was expanded last month with an additional agreement worth up to $4 billion through 2029. Bringing Google Cloud onboard as a customer helps CoreWeave diversify its revenue while leveraging Google’s deep pockets to secure better financing for data center expansions. For Google, it enhances its cloud business by tapping into the surging AI market and positions it as a neutral provider of compute resources amid competition with Amazon and Microsoft.

CoreWeave’s stock has surged over 270% since its IPO, reflecting strong investor confidence despite concerns over leverage and GPU demand shifts. Meanwhile, Microsoft, CoreWeave’s former largest customer, is reconsidering its data center strategy and renegotiating investment terms with OpenAI.

Neither CoreWeave, Google, nor OpenAI commented on the details of the deal.

OpenAI Partners with Google Cloud in Surprising AI Rivalry Deal

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OpenAI has struck a significant cloud computing deal with Alphabet’s Google Cloud to support its growing AI infrastructure needs, sources told Reuters. This collaboration, finalized in May, marks an unprecedented partnership between two major competitors in artificial intelligence.

The move signals OpenAI’s efforts to diversify beyond its longtime partner Microsoft, which had exclusively provided data center services until January. Google Cloud will now supply additional computing power to OpenAI for training and running its large language models, including ChatGPT.

The deal highlights the immense compute demands required for AI development and how competitive dynamics are evolving. Despite the fierce rivalry—OpenAI’s ChatGPT poses a strong challenge to Google’s dominant search business—both companies have chosen to cooperate in meeting infrastructure needs.

Alphabet’s stock rose 2.1% following the news, while Microsoft shares slipped 0.6%. Analysts at Scotiabank called the partnership “somewhat surprising” but a strategic win for Google Cloud, which has been aggressively expanding its AI hardware offerings, including tensor processing units (TPUs) used internally and for other customers like Apple.

OpenAI’s recent moves to reduce dependency on Microsoft include partnerships with SoftBank, Oracle, and CoreWeave, as well as plans to develop its own AI chips to cut reliance on external hardware providers. Meanwhile, Microsoft and OpenAI continue to renegotiate their multibillion-dollar investment terms.

Google’s Cloud business, generating $43 billion in sales in 2024, aims to capture market share against rivals Amazon and Microsoft by positioning itself as a neutral cloud provider favored by AI startups with costly infrastructure needs.

This deal presents a complex balancing act for Alphabet CEO Sundar Pichai, who must allocate limited chip capacity between competing demands from Google’s own AI projects and cloud customers. Despite ChatGPT’s threat to Google’s search dominance, Pichai remains confident in the company’s position.