Daily AI News: OpenAI's $38B AWS Deal

OpenAI just secured a seven-year, $38B agreement with Amazon Web Services for computing infrastructure, marking the company’s largest diversification away from Microsoft’s cloud services.

The Details & Why It Matters

OpenAI just secured a seven-year, $38B agreement with Amazon Web Services for computing infrastructure, marking the company’s largest diversification away from Microsoft’s cloud services.

The details:

  • The partnership grants OAI access to hundreds of thousands of Nvidia GPUs across AWS data centers, with deployment targeted for late 2026 completion.
  • The compute will support everything from powering ChatGPT's live interactions to developing upcoming models, with flexible scaling built into the contract.
  • Last week's contract renegotiation with Microsoft removed exclusivity requirements, allowing OAI to purchase capacity from other providers.
  • The AWS agreement is part of OAI's broader $1.4T infrastructure buildout plan that includes partnerships with Oracle, Google, Nvidia, and Broadcom.

Why it matters:

OpenAI continues to scale its already-staggering compute commitments, with yet another giant deal coming at a time when many continue to question the sustainability of spending given the AI leader’s revenue. But CEO Sam Altman had a quick answer for the skeptics — feel free to sell your shares.


Sourced from daily tech reports.