Amazon and OpenAI Seal a Monumental $38B AI Cloud Agreement, Catapulting Stock to Unprecedented Heights
Amazon Web Services has clinched a colossal seven-year, $38 billion agreement with OpenAI. This deal has catapulted Amazon shares to an unprecedented high, augmenting nearly $140 billion to the company’s market value. The alliance provides OpenAI with instant access to hundreds of thousands of Nvidia’s advanced GB200 and GB300 graphics processing units, all nestled within Amazon’s cloud infrastructure.
This historic accord signifies OpenAI’s most significant shift away from Microsoft, which had been its exclusive cloud provider until earlier this year. As part of the deal, OpenAI is set to scale to full computing capacity by the end of 2026, with expansion options extending into 2027 and beyond. This agreement forms a crucial part of OpenAI’s ambitious $1.4 trillion spending blueprint over the forthcoming five years, aiming to develop 30 gigawatts of computing resources.
“Scaling frontier AI requires massive, reliable compute,” stated OpenAI CEO Sam Altman. “Our partnership with AWS fortifies the broad compute ecosystem that will power this next era.”
For Amazon, this deal reaffirms AWS’s standing in the AI infrastructure competition against Microsoft and Google. This comes as the company reported an over 20% year-on-year revenue surge in its cloud division last week.
Source: CNBC