OpenAI signs $38 billion deal to power AI tools with ‘hundred of thousands’ of Nvidia chips via Amazon Web Services

Fortune

9 hours ago

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OpenAI has entered into a significant $38 billion agreement with Amazon Web Services (AWS) to access hundreds of thousands of Nvidia's AI chips. This deal will enable OpenAI to power its artificial intelligence tools and systems, including ChatGPT, on Amazon's data centers in the United States. The partnership is designed to meet the escalating demand for computing power driven by rapid advancements in AI technology. OpenAI will begin utilizing AWS compute resources immediately, with the full capacity expected to be deployed by the end of 2026 and potential for further expansion into 2027 and beyond. This move addresses OpenAI's critical need for increased computing capacity to develop new AI systems and maintain its existing products for its vast user base. This substantial agreement follows a recent shift in OpenAI's cloud computing strategy, with a modification to its partnership with Microsoft, which was previously its exclusive cloud provider. The deal also comes am... download the app to read more

idst regulatory approvals in California and Delaware that permit OpenAI to restructure its organization for easier capital raising and profit generation, despite its nonprofit origins. The significant financial commitments OpenAI is making towards AI infrastructure have raised some investor concerns due to its lack of current profitability, though CEO Sam Altman has expressed confidence in continued steep revenue growth.

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