OpenAI, Amazon and AWS
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OpenAI (PC:OPAIQ) has signed a new $38 billion agreement with Amazon Web Services ($AMZN) for cloud services over seven years. The deal will
On Monday, Amazon announced a partnership that will allow OpenAI to use the company’s cloud computing services to run AI systems for products like the popular ChatGPT. OpenAI is paying $38 billion to access Amazon Web Services (AWS) servers and “hundreds of thousands of state-of-the-art NVIDIA GPUs.”
Amazon says the constraint right now is power, not chips; it’s giving plenty of the latter to OpenAI. Then, Amazon solves groceries by getting faster tat delivering everything else.
Amazon gains a marquee client for AWS, its profit engine, validating billions invested in AI-ready infrastructure. The deal bolsters AWS against rivals Microsoft Azure and Google Cloud, while tying OpenAI closer to Amazon's ecosystem—building on prior integration of OpenAI's open-weight models into AWS services like Bedrock.
OpenAI's $38 billion switch to Amazon Web Services after its restructure reshapes the AI landscape, sparking industry tension and global anticipation.