OpenAI Signs $38 Billion Mega-Deal with Amazon: ChatGPT to Get AWS Support for Next-Gen AI

With Amazon’s Computing Power and Scalability, OpenAI Can Train Larger, Faster, and Smarter Models While Reaching New Users Worldwide
OpenAI Signs $38 Billion Mega-Deal with Amazon
Written By:
Soham Halder
Reviewed By:
Shovan Roy
Published on

OpenAI inks a $38 billion deal with Amazon Web Services (AWS) to power and scale its artificial intelligence systems. Industry insiders are calling it a strategic counter to Microsoft’s Azure dominance. 

With AWS support, users can expect smoother performance, faster responses, and even more advanced AI features in the future.

OpenAI-AWS Deal

The multi-year deal will enable OpenAI to use AWS’s cloud infrastructure to run and expand its core AI workloads. The partnership is expected to continue growing over the next seven years, according to the new agreement. 

“OpenAI will be accessing AWS compute comprising hundreds of thousands of state-of-the-art NVIDIA GPUs, with the ability to expand to tens of millions of CPUs to rapidly scale agentic workloads,” mentioned Amazon news blog.

OpenAI will soon start utilizing AWS compute as part of this partnership, with all capacity targeted for deployment by the end of 2026 and the ability to expand further into 2027 and beyond.

How AWS Power Will Transform ChatGPT?

AWS has unusual experience running large-scale AI infrastructure securely, reliably, and at scale, with clusters exceeding 500K chips. 

Clustering the NVIDIA GPUs, both GB200s and GB300s, through Amazon EC2 UltraServers on the same network enables low-latency performance across interconnected systems. This will allow OpenAI to efficiently run workloads for optimal performance. 

The clusters are designed to support various workloads. It will help OpenAI train its next-generation models, with the flexibility to adapt using AWS.

What Leaders are Saying?

AWS's leadership in cloud infrastructure, combined with OpenAI's pioneering advancements in generative AI, will help millions of users continue to get value from ChatGPT.

OpenAI co-founder and CEO Sam Altman said, “Scaling frontier AI requires massive, reliable compute. Our partnership with AWS strengthens the broad compute ecosystem that will power this next era and bring advanced AI to everyone.”

“As OpenAI continues to push the boundaries of what's possible, AWS's best-in-class infrastructure will serve as a backbone for their AI ambitions,” said Matt Garman, CEO of AWS. “The breadth and immediate availability of optimized compute demonstrates why AWS is uniquely positioned to support OpenAI's vast AI workloads.”

Also Read: OpenAI's $500B Valuation: Bubble or Blueprint for AI Supremacy?

Final Thoughts

The rapid growth of AI technology has created high demand for computing power. The pioneers in this field are trying to reach new heights of intelligence and are increasingly seeking enhanced performance, scale, and security. 

The Amazon deal could be the boost OpenAI needs to take ChatGPT to the next level. The deal reflects not just collaboration, but competition at the highest level of innovation.

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