AWS lands $38B deal to power OpenAI.
Amazon Strikes $38B Deal to Supply OpenAI with Nvidia AI Chips
OpenAI signs a massive, multi-year deal with AWS, securing critical cloud computing power to advance its next-generation artificial intelligence.
Highlights
- AWS and OpenAI have signed a landmark $38 billion cloud computing deal.
- OpenAI gets massive access to advanced Nvidia GPUs for its AI models.
- The deal is a major strategic win for AWS and diversifies OpenAI's partners.
Amazon Web Services (AWS) has just secured a landmark $38 billion USD, seven-year deal with OpenAI, the company behind ChatGPT. Announced on Monday, the agreement is one of the largest in the history of artificial intelligence and will provide OpenAI with massive computing power for its advanced models. The news was a big hit with investors, causing Amazon's shares to surge by about 6%.
Under the terms of the Amazon-OpenAI deal, AWS will give OpenAI access to hundreds of thousands of advanced Nvidia graphics processing units (GPUs), including the latest GB200 and GB300 AI accelerators. These chips are essential for training and running next-generation AI. OpenAI will get immediate access to the hardware, with the full capacity of these GPUs expected to be online by the end of 2026 and options to expand in 2027.
Leaders from both companies highlighted the deal's importance. AWS Chief Executive Officer Matt Garman said Amazon's "best-in-class infrastructure will serve as a backbone" for OpenAI's ambitions. Meanwhile, OpenAI CEO Sam Altman added that the partnership "strengthens the broad compute ecosystem" needed to advance AI and bring it to everyone.
A Major Strategy Shift in the AI Cloud Race
This Amazon OpenAI AWS deal marks a significant strategy shift for OpenAI. The AI lab, which is heavily backed by Microsoft, was previously tied almost exclusively to Microsoft's Azure cloud. This move shows OpenAI is aggressively diversifying to secure the enormous amount of computing power it needs.
This single deal is part of a much larger picture. OpenAI has reportedly committed a staggering $1.4 trillion to infrastructure and has also signed massive deals with other providers, including Oracle, Google, and CoreWeave.
For Amazon, this is a major victory. The company is now in the unique position of being a key infrastructure provider for creators of ChatGPT while also being the backer of Anthropic, OpenAI's main rival. By powering both sides of the AI race, AWS is positioning itself as the essential "picks and shovels" provider for the entire AI boom, strengthening its competition against both Microsoft and Google.
"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,” said AWS Chief Executive Officer Matt Garman.
Author
Krishna Goswami is a content writer at Outlook India, where she delves into the vibrant worlds of pop culture, gaming, and esports. A graduate of the Indian Institute of Mass Communication (IIMC) with a PG Diploma in English Journalism, she brings a strong journalistic foundation to her work. Her prior newsroom experience equips her to deliver sharp, insightful, and engaging content on the latest trends in the digital world.
Krishna Goswami is a content writer at Outlook India, where she delves into the vibrant worlds of pop culture, gaming, and esports. A graduate of the Indian Institute of Mass Communication (IIMC) with a PG Diploma in English Journalism, she brings a strong journalistic foundation to her work. Her prior newsroom experience equips her to deliver sharp, insightful, and engaging content on the latest trends in the digital world.
