"OpenAI has signed a landmark $38 billion agreement with Amazon Web Services (AWS) to secure the immense computing power required to train and deploy its next generation of artificial intelligence systems - marking one of the biggest technology infrastructure deals ever struck. The partnership, announced this week, will give the maker of ChatGPT access to vast fleets of graphics processors - including hundreds of thousands of Nvidia chips - hosted within Amazon's cloud network."
"OpenAI will begin using AWS infrastructure immediately, with full deployment expected by the end of 2026 and room to expand further beyond 2027. The move represents a significant shift for OpenAI, which until now has relied heavily on Microsoft's Azure platform to power its models. The deal also underscores the intensifying race among cloud giants to dominate the lucrative AI infrastructure market."
"Following the announcement, Amazon shares surged to a record high, briefly valuing the company at more than $2.74 trillion, as investors hailed the agreement as a strong endorsement of AWS's capabilities. Sam Altman, OpenAI's chief executive, said the partnership was critical to scaling what he called "frontier AI". "Scaling frontier AI requires massive, reliable compute," he said. "Our partnership with AWS strengthens the broad compute ecosystem that will power this next era and bring advanced AI to everyone.""
"For Amazon, the deal serves as a powerful vote of confidence in AWS at a time when some analysts had questioned whether the cloud division was falling behind rivals Microsoft and Google in the AI race. The agreement ensures AWS remains central to the next phase of AI development - an arena now defined by unprecedented hardware and capital demands."
OpenAI signed a $38 billion agreement with Amazon Web Services to obtain the computing power needed to train and deploy next-generation AI systems. The partnership gives ChatGPT's creator access to vast fleets of GPUs, including hundreds of thousands of Nvidia chips, hosted within AWS's cloud. OpenAI will start using AWS immediately and plans full deployment by the end of 2026 with possible expansion beyond 2027. The move marks a major shift from heavy reliance on Microsoft's Azure. Amazon shares rose to a record high after the announcement. The deal reinforces AWS's role in AI infrastructure amid escalating hardware and capital demands.
Read at Business Matters
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