OpenAI Bets Big on AWS

OpenAI has committed to a $38 billion deal with Amazon Web Services (AWS) to secure substantial computing power for its AI operations. This agreement grants OpenAI immediate access to Nvidia GPUs via AWS data centres, accelerating both the inference of existing models and the training of future AI generations. The deal, spanning seven years, forms part of OpenAI's strategy to diversify its cloud dependencies and reduce reliance on Microsoft Azure, despite an existing $250 billion commitment.

For Amazon, this partnership strengthens its position in the competitive cloud sector. It follows Amazon's commitment to invest heavily in its AI capabilities, including an $11 billion AI campus in Indiana. The agreement allows for the integration of future technologies, including AWS's Trainium chips.

This infrastructure spending aligns with OpenAI's plans for potential public listing, requiring internal restructuring to facilitate profitability. The AWS partnership builds upon existing collaborations, with some of OpenAI's open-source models already available on Amazon servers.