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OpenAI and Amazon sign landmark agreement to reshape the cloud computing landscape

A massive new deal with Amazon Web Services signals a strategic shift for the AI leader.

In a landmark $38 billion deal, AI titan OpenAI is forging a powerful new alliance with Amazon Web Services (AWS).

openai sam altmann amazon

This seven-year partnership, announced just days after Amazon laid off 14,000 employees, marks a strategic pivot for OpenAI as it diversifies beyond its primary backer, Microsoft.

The agreement grants OpenAI access to a massive arsenal of advanced Nvidia chips within AWS data centres, providing the raw computational firepower needed to train its next-generation models.

While experts clarify the deal doesn’t change data scraping permissions, it is a resounding vote of confidence in AWS, which some feared was lagging in the AI race.

The announcement sent Amazon’s stock soaring, even as it highlights the industry’s colossal energy demands and trillion-dollar spending that are fuelling concerns of an AI bubble.