OpenAI and Amazon Web Services Forge $38 Billion Cloud Deal
On Monday, OpenAI revealed a multi-year strategic partnership valued at $38 billion with Amazon Web Services. This collaboration is designed to grant the ChatGPT creator access to AWS’s sophisticated cloud infrastructure, facilitating the support of its expanding artificial intelligence workloads. The deal signifies the first significant announcement following OpenAI’s restructuring last week, which liberated the ChatGPT creator from its non-profit framework. According to Reuters, it also forms part of a broader strategy by OpenAI and its largest investor, Microsoft, to reduce their mutual dependence.
According to OpenAI, the agreement will provide the organization with immediate and expanding access to AWS compute resources. This includes Amazon EC2 UltraServers outfitted with thousands of Nvidia chips and the ability to scale to millions of CPUs. The seven-year partnership is designed to assist OpenAI in swiftly enhancing its compute capacity by utilizing AWS’s price, performance, scale, and security, it added. AWS announced that its infrastructure for OpenAI will utilize cutting-edge Nvidia GB200 and GB300 GPUs, organized through EC2 UltraServers to facilitate efficient AI processing across interconnected systems.
The deployment is anticipated to facilitate both ChatGPT inference and the training of next-generation models, the company stated. “Scaling frontier AI requires massive, reliable compute,” stated OpenAI co-founder and chief executive officer Sam Altman. “Our partnership with AWS strengthens the broad compute ecosystem that will power this next era and bring advanced AI to everyone.” AWS CEO Matt Garman stated, “As OpenAI continues to push the boundaries of what’s possible, AWS’s best-in-class infrastructure will serve as a backbone for their AI ambitions.” The extensive range and prompt accessibility of optimized computing illustrate AWS’s unique capability to back OpenAI’s extensive AI workloads.”
AWS has stated that all compute capacity under this partnership is anticipated to be deployed by the end of 2026, with the possibility of further expansion into 2027 and beyond. Earlier this year, OpenAI made its foundation models available on Amazon Bedrock, an AWS-managed service for generative AI. In the wake of the restructuring, the company revealed an agreement to acquire an additional $250 billion in cloud computing services from Microsoft Azure. As per reports, OpenAI has engaged Google for cloud infrastructure and has reportedly entered into a separate five-year agreement with Oracle worth $300 billion to secure additional computing power.
