"AI requires huge amounts of energy and computing power and OpenAI has long signaled that it needs more capacity, both to develop new AI systems and keep existing products like ChatGPT answering the questions of its hundreds of millions of users. It's recently made more than $1 trillion worth of financial obligations in spending for AI infrastructure, including data center projects with Oracle and SoftBank and semiconductor supply deals with chipmakers Nvidia, AMD and Broadcom."
"OpenAI and Amazon have signed a $38 billion deal that enables the ChatGPT maker to run its artificial intelligence systems on Amazon's data centers in the U.S. OpenAI will be able to power its AI tools using "hundreds of thousands" of Nvidia's specialized AI chips through Amazon Web Services as part of the deal announced Monday. Amazon shares increased 4% after the announcement."
OpenAI and Amazon agreed to a $38 billion partnership enabling OpenAI to run artificial intelligence systems on Amazon's U.S. data centers and use AWS compute. OpenAI will access "hundreds of thousands" of Nvidia specialized AI chips, with capacity targeted for deployment before the end of 2026 and potential expansion into 2027 and beyond. Amazon shares rose 4% after the announcement. The deal follows OpenAI's revision of its exclusive cloud relationship with Microsoft and regulatory approval for a new business structure to raise capital. OpenAI has accumulated more than $1 trillion in infrastructure obligations and faces investor concerns about funding and circular deals.
Read at Fortune
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