Alphabet up after report OpenAI to add Google's cloud service

Shares of Google parent Alphabet GOOGL.O up 2.4% at $180.36 - highest since February

Microsoft-backed MSFT.O OpenAI plans to add Google cloud service to meet its growing needs for computing capacity, Reuters reported, citing three sources

The deal, which has been under discussion for a few months, was finalized in May, one of the sources said

Google's cloud unit will supply additional computing capacity to OpenAI's existing infrastructure for training and running its AI models, the sources added

*"Ultimately, we view this as a big win for Google's cloud unit, but OpenAI’s revenue is growing around ~250% annually, and there are continued worries that ChatGPT is becoming an incrementally larger threat to Google’s search dominance" - Scotiabank

MSFT was down 0.7%, while OpenAI's Stargate partner Oracle's shares ORCL.N were down 1%

Up to last close, GOOGL had fallen ~7% this year