Massive $38 billion deal between Amazon and OpenAI
Amazon Web Services and OpenAI have signed a $38 billion strategic partnership that will usher in a new era for cloud infrastructure.
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In a statement released by Amazon, the company announced a seven-year partnership between its cloud platform, AWS, and OpenAI. This agreement will allow OpenAI to utilize AWS's high-level infrastructure in its artificial intelligence development processes.
Under the partnership, OpenAI will be able to access AWS's massive cloud infrastructure and hundreds of thousands of Nvidia graphics processing units to train and run its artificial intelligence models at an accelerated pace. The total value of the agreement is stated to be $38 billion.
Amazon and OpenAI will work together to meet the rapidly increasing demand for computing power in this new era. OpenAI will begin taking advantage of AWS's benefits immediately, with the goal of having the platform's full capacity available by the end of 2026. Furthermore, it will be possible to expand this capacity in 2027 and beyond.
In the statement, OpenAI CEO Sam Altman said, “Frontier AI needs massive, reliable compute. Our partnership with AWS strengthens the compute ecosystem that will power this next era and make advanced AI accessible to everyone.”