OpenAI strikes 7-year, $38B cloud computing deal with Amazon Web Services

New York Post

12 hours ago

YoyoFeed Ai Summary

OpenAI has finalized a substantial seven-year agreement with Amazon Web Services (AWS) valued at $38 billion. This deal is crucial for OpenAI to acquire the necessary cloud computing power to operate its advanced artificial intelligence tools, including ChatGPT and Sora. The agreement grants OpenAI access to a vast number of Nvidia chips hosted in Amazon's worldwide data centers, with full operational capacity expected by the end of 2026. This partnership signifies OpenAI's first time utilizing Amazon's infrastructure, occurring shortly after a restructuring of its ownership which removed Microsoft's exclusive right to supply cloud services. OpenAI CEO Sam Altman stated the partnership will strengthen the computing ecosystem needed for the next era of AI and make advanced AI accessible to everyone. Under the terms of the deal, OpenAI will employ Amazon's UltraServer clusters, equipped with Nvidia GB200 and GB300 processors, to train and run its AI models, handle ChatGPT queries, and develop its autonomous AI systems. The collaboration also provides OpenAI access to millions of CPUs for specialized tasks, enabling it to manage increasing user demand for AI services. For Amazon, this agreement is a strategic move to bolster its cloud computing division... download the app to read more

, AWS, which has been trailing behind competitors Microsoft and Google in revenue growth driven by AI. While AWS remains the leading cloud provider, it is actively investing and forming partnerships, including a $8 billion investment in Anthropic, to enhance its position in the AI market. Previously, OpenAI's exclusive cloud arrangement with Microsoft limited its ability to secure services from other providers, but recent changes in OpenAI's structure have allowed for broader industry partnerships to address significant computing shortages.

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