"OpenAI has signed a $38bn (29bn) contract with Amazon to access its cloud computing infrastructure as it continues its run of major partnerships. In 2025, the ChatGPT maker has signed deals worth more than $1tn with Oracle, Broadcom, AMD and chip-making giant Nvidia. As part of the seven-year agreement, OpenAI will gain access to Nvidia graphics processors to train its artificial intelligence models."
"The deal follows a sweeping restructure of OpenAI last week which saw it convert away from being a non-profit and changed its relationship with Microsoft to give OpenAI more operational and financial freedom. "Scaling frontier AI requires massive, reliable compute," said OpenAI co-founder and CEO Sam Altman. "Our partnership with AWS [Amazon Web Services] strengthens the broad compute ecosystem that will power this next era and bring advanced AI to everyone.""
"The deal reflects the massive demand for computer power coming from the growing interest in AI. Following the announcement of the deal on Monday, Amazon shares hit an all-time high, adding $140bn (106bn) to its valuation. In response to OpenAI's deal spree, there has been some speculation that an AI bubble may be in the offing. Speaking to the BBC last month, Sam Altman said: "Yes, the investment loans are unprecedented", but added: "It's also unprecedented for companies to be growing revenue this fast.""
OpenAI signed a $38bn seven-year agreement with Amazon to access AWS cloud infrastructure and Nvidia graphics processors for training AI models. The deal is part of more than $1tn in 2025 partnerships with Oracle, Broadcom, AMD and Nvidia. The agreement follows a restructure that converted OpenAI away from non-profit status and altered its Microsoft relationship to increase operational and financial freedom. Scaling frontier AI requires massive, reliable compute, and the partnership strengthens the compute ecosystem to bring advanced AI to everyone. Amazon shares rose to an all-time high, adding $140bn to its valuation. There is some speculation about a potential AI investment bubble despite rapid revenue growth.
Read at www.bbc.com
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