OpenAI and Amazon have signed a $38 billion deal that will enable the ChatGPT maker to run its AI systems in Amazon’s US data centers.
OpenAI will be able to power its AI tools using “hundreds of thousands” of Nvidia’s specialized AI chips through Amazon Web Services as part of the deal announced Monday.
Amazon shares rose 4% after the announcement.
The agreement comes less than a week after OpenAI changed its partnership with its longtime backer Microsoft, which until early this year was the startup’s exclusive cloud computing provider.
Regulators in California and Delaware last week also allowed San Francisco-based OpenAI, which was founded as a nonprofit, to move forward with its plan to… Forming a new business A structure to raise capital more easily and make a profit.
“Rapid advances in artificial intelligence technology have created an unprecedented demand for computing power,” Amazon said in a statement on Monday. OpenAI “will immediately begin using AWS compute as part of this partnership, targeting deployment of all capabilities before the end of 2026, and the ability to expand further in 2027 and beyond,” she said.
AI requires huge amounts of power and computing power, and OpenAI has long indicated that it needs more capacity, both to develop new AI systems and to maintain existing products like ChatGPT to answer the questions of hundreds of millions of users. It recently made financial commitments worth more than $1 trillion in AI infrastructure spending, including data center projects with Oracle and SoftBank and semiconductor supply deals with chipmakers Nvidia, AMD and Broadcom.
Some deals have raised investor concerns about their “circular” nature, since OpenAI is not profitable and cannot yet pay for the infrastructure provided by its cloud backers based on expectations of future returns on their investments. Sam Altman, CEO of OpenAI, last week dismissed skeptics who he said had expressed “breathless concern” about the deals.
“Revenues are growing sharply. We’re betting they’ll continue to grow,” Altman said in a podcast where he appeared with Microsoft CEO Satya Nadella.
Amazon already is The primary cloud provider for AI Startup Anthropic, an OpenAI competitor that makes the chatbot Claude.
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