OpenAI and Amazon Web Services Ink a Monumental $38B Cloud Computing Partnership
OpenAI, the AI startup, has inked a colossal $38 billion deal with Amazon Web Services (AWS). This significant contract marks OpenAI’s first major alliance with the leader in cloud infrastructure, thereby reducing its dependence on Microsoft. As per the seven-year agreement announced on Monday, OpenAI will commence running workloads on AWS infrastructure forthwith.
The partnership will provide OpenAI with access to hundreds of thousands of Nvidia graphics processing units (GPUs) across the United States. Additionally, there are plans to augment capacity in the forthcoming years. This deal signifies OpenAI’s largest infrastructure agreement to date, as the $500 billion AI company escalates its operations beyond its erstwhile Microsoft partnership.
Following the announcement, Amazon shares witnessed a 4% rally, while the broader “Magnificent Seven” tech stocks experienced a 1.2% gain. This deal highlights the fierce competition in the realms of cloud computing and AI infrastructure. Companies are in a race to secure access to crucial GPU resources for training and deploying AI models.
Source: CNBC