What happened
OpenAI and Amazon Web Services (AWS) have signed a seven-year, $38 billion deal for cloud computing services. OpenAI will immediately begin using AWS infrastructure, gaining access to hundreds of thousands of Nvidia GPUs to train and run its AI models. Full capacity is expected to be deployed by the end of 2026, with plans to expand further into 2027 and beyond.
Why it matters
- The deal marks OpenAIâs first major partnership with AWS, shifting from its previous exclusive cloud provider, Microsoft.
- It provides OpenAI with massive computing power essential for advancing AI development and scaling its services.
- The agreement strengthens AWSâs position in the competitive cloud AI market against Microsoft and Google.
Key facts
- 1. The deal is valued at $38 billion over seven years.
- 2. OpenAI will access hundreds of thousands of Nvidia GPUs through AWS.
- 3. Full AWS computing capacity for OpenAI is targeted to be operational by the end of 2026, with expansion planned into 2027.
