Alphabet Inc. (GOOG  ) shares are rising Wednesday, hours before its third-quarter earnings report. A report surfaced that OpenAI is preparing to purchase AI chips from Google. Here's what you should know.

What to Expect From Alphabet's Third-Quarter Earnings

Alphabet reports after the market closes Wednesday. A year ago, it booked $102.35 billion in third-quarter revenue and $2.87 per share in earnings. Analysts now expect $128.20 billion and $3.02, according to Benzinga Pro. Alphabet has topped both revenue and earnings forecasts 14 quarters in a row.

In the second quarter, Alphabet took in about $119.80 billion, beating the $116.82 billion forecast and growing 24%. Google Cloud nearly doubled, rising 82% from $13.62 billion to $24.77 billion. Search grew from $54.19 billion to $63.27 billion, and YouTube ads from $9.80 billion to $11.06 billion.

Alphabet earned $9.11 a share, which it said was 294% above the year-earlier figure, though that number may not be comparable with analyst forecasts.

Alphabet in Focus Ahead of Earnings as OpenAI Reportedly Eyes Google AI Chips

OpenAI intends to acquire AI chips from Google, The Information reported Tuesday, citing a person with familiar with the matter. Reuters relayed the story, which offered no financial terms or other specifics.

Google calls its AI processors Tensor Processing Units, or TPUs. Nvidia counts OpenAI among its biggest buyers of GPUs, the graphics processors that train and operate OpenAI's models. This year, Google started offering TPUs outright to select customers, and the chips are gaining ground as a lower-cost rival to Nvidia's. CFO Anat Ashkenazi previously said the company expects to recognize a relatively small portion of revenue from its existing TPU sales agreements in 2026, with the vast majority coming in 2027.

A purchase would bring two competitors closer. OpenAI and Google contest AI and search, yet the business between them keeps growing. OpenAI said last week it will make its frontier models available through Google Cloud. Reuters also reported in June 2025 that OpenAI had started leasing Google chips.

GOOG Shares Are Moving Higher

GOOG Price Action: Alphabet shares were up 1.03% at $320.08 at the time of publication on Wednesday, according to Benzinga Pro.