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Cloud providers are chasing after AI unicorn , and the latest isFei - Fei Li ’s World Labs . The startup just tapped Google Cloud as its master compute supplier to train AI model , a deal that could be worth hundreds of one thousand thousand of dollars . But Li ’s tenure as chief scientist of AI at Google Cloud was n’t a factor , the company says .

During the Google Cloud Startup Summit on Tuesday , the companiesannouncedWorld Labs will use a large chunk of its funding to license GPU servers on the Google Cloud Platform , and ultimately train “ spatially reasoning ” AI models .

A handful of well - funded startups work up AI base models are highly sought after in the cloud services world . Some of the largest peck include OpenAI , which solely develop and head for the hills AI models on Microsoft Azure , and Anthropic , which uses AWS and Google Cloud . These companies regularly pay millions of dollars for computing services , and could one day postulate even more as their AI models scale . That get to them worthful customers for Google , Microsoft , and AWS to progress relationships with early on .

World Labs is certainly building unequalled , multimodal AI framework with significant compute need . The startup justraised $ 230 millionat more than a billion - buck valuation , a deal go by A16Z , so as to build AI world fashion model . General manager of startups and AI at Google Cloud , James Lee , tells TechCrunch that World Labs ’ AI models will one day be able to sue , generate , and interact with TV and geospatial data . World Labs calls these AI models “ spacial intelligence . ”

Li has deep draw with Google Cloud , having lead the party ’s AI elbow grease in 2018 . However , Google traverse that this muckle is a mathematical product of that relationship , and rejects the approximation that cloud services are just commodities . Instead , Lee say services , such as its High Performance Toolkit to scale AI workload , and its deep provision of AI check were a magnanimous factor .

“ Fei - Fei is obviously a friend of GCP , ” said Lee in an audience . “ GCP was n’t the only pick they calculate at . But for all the reasons we talked about – our AI optimized infrastructure and the ability to get together their scalability demand – ultimately they derive to us . ”

Google Cloud offer AI startups a pick between its proprietary AI chips , tensor processing units or TPUs , and Nvidia ’s GPUs , which Google purchases and has a more circumscribed supply of . Google Cloud is trying to get more startup to train AI models on TPUs , largely as a means to deoxidize its dependency on Nvidia . All cloud supplier are limited today by the scarceness of Nvidia GPUs , so many are build their own AI chips to run across need . Google Cloud say some startups are training and inferencing solely on TPUs , however , GPUs still remain the industry ’s favored AI training potato chip .

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World Labs chose to take aim its AI model on GPUs in this deal . However , Google Cloud would n’t say what go into that decisiveness .

“ We worked with Fei - Fei and her mathematical product team , and at this stage of their product roadmap , it made more sense for them to work out with us on the GPU program , ” said Lee in an audience . “ But it does n’t needfully mean it ’s a permanent decision … Sometimes [ startups ] move onto different platforms , such as TPUs . ”

Lee would not disclose how large World Labs ’ GPU cluster is , but cloud provider often give monumental supercomputers for startups training AI models . Google Cloud promised another startup training AI understructure models , Magic , a cluster with “ tens of yard of Blackwell GPUs , ” each of which has more big businessman than a gamey - remnant gaming PC .

These cluster are easier to promise than they are to fulfill . Google ’s cloud service competitor Microsoft is reportedlystruggling to take on the insane compute demandsof OpenAI , squeeze the startup to tap other options for computing tycoon .

World Labs ’ deal with Google Cloud is not exclusive , mean the inauguration may still strike hatful with other cloud providers . However , Google Cloud hosts the absolute majority of World Labs ’ workloads today , and says it will essay to maintain that stage business moving forward .