Amazon Skyrockets After $38 Billion Deal with OpenAI
Amazon Web Services (AWS) announced the seven-year agreement, which grants OpenAI access to AWS’s high-performance computing power.
Quick overview
- Amazon shares surged 4.9% after announcing a $38 billion deal with OpenAI to enhance AI infrastructure.
- The seven-year agreement allows OpenAI to utilize Amazon Web Services' high-performance computing power.
- OpenAI will have the option to expand its AWS usage beyond 2027, with full capacity expected by year-end.
- The partnership aims to advance AI accessibility, leveraging AWS's expertise in large-scale AI infrastructure.
Amazon shares (AMZN) surged on Wall Street after the company confirmed a $38 billion deal with OpenAI to expand artificial intelligence (AI) infrastructure in a strategic partnership that will significantly boost the creator of ChatGPT’s computing and storage capacity.
Amazon Web Services (AWS) announced the seven-year agreement, which grants OpenAI access to AWS’s high-performance computing power. Following the news, Amazon’s stock jumped 4.9% on the New York Stock Exchange.
The full computing capacity covered by the deal is expected to be deployed by the end of the year, with OpenAI retaining the option to expand its use of AWS beyond 2027.
OpenAI said AWS “has exceptional expertise in operating large-scale AI infrastructure securely, reliably, and efficiently, with clusters exceeding 500,000 compute units.” The company highlighted AWS’s leadership in cloud infrastructure and the synergy between OpenAI’s advances in generative AI and Amazon’s cutting-edge hardware.
The clusters will support a range of workloads, and Amazon plans to deploy thousands of chips, including Nvidia’s GB200 and GB300 AI accelerators.
“This partnership will bring advanced AI to everyone”
OpenAI CEO Sam Altman stated, “Scaling frontier AI requires massive and reliable compute capacity. Our partnership with AWS strengthens the compute ecosystem powering this new era and brings advanced AI to everyone.”
Meanwhile, Dave Brown, AWS’s Vice President of Compute and Machine Learning Services, noted: “This is a completely separate capacity we’re deploying. Part of it is already online, and OpenAI is already using it.”
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