OpenAI has signed a seven-year, $38 billion deal with Amazon.com.
The move marks the company’s first major push to bolster its artificial intelligence (AI) ambitions, following a restructuring last week that gave the ChatGPT maker more operational and financial freedom.
The deal, announced Monday, will give OpenAI access to hundreds of thousands of Nvidia graphics processors for training and running AI models.
The deal also reflects the AI industry’s growing demand for computing power, as companies race to develop systems that can match or surpass human intelligence.
The partnership also shows confidence in Amazon Web Services, which had previously been feared to be lagging behind Microsoft and Google.
However, those concerns have eased after strong growth was reported in the September quarter.
OpenAI CEO Sam Altman said the company is committed to spending $1.4 trillion to build 30 gigawatts of computing resources, enough to power 25 million homes in the United States.
Amazon shares surged to an all-time high on Monday, adding $140 billion to the company’s market value. Its shares rose 5% after a 10% gain on Friday, while Microsoft shares fell slightly on the news.
Meanwhile, OpenAI will begin using Amazon Web Services (AWS) immediately, with full capacity expected to be available by the end of 2026, with the potential for further expansion in 2027 and beyond.
Amazon also plans to deploy hundreds of thousands of chips, including Nvidia GB200 and GB300 AI accelerators, in a data cluster designed to support ChatGPT responses and train the next generation of OpenAI models.
Amazon is now making OpenAI models open-sourced on Amazon Bedrock, a platform that offers a wide range of AI models to businesses using AWS.
