OpenAI strengthens AI infrastructure - $38 billion deal with Amazon for cloud services

OpenAI has signed a seven-year, $38 billion deal to buy cloud services from Amazon.com, in its first major effort to bolster its artificial intelligence ambitions. The partnership follows a restructuring last week that gave the ChatGPT creator more operational and financial freedom.
The deal will give OpenAI access to hundreds of thousands of Nvidia GPUs to train and run AI models. The pact highlights the AI industry's boundless hunger for computing power as companies race to build systems that can rival or surpass human intelligence.
OpenAI CEO Sam Altman has said the company is committed to spending $1.4 trillion to develop 30 gigawatts of computing resources, enough to power about 25 million homes in the US.
The deal also represents a major vote of confidence in Amazon Web Services' cloud unit, which some investors thought was lagging behind rivals Microsoft and Google. Those concerns were eased somewhat by the strong business growth reported in the September quarter.
OpenAI will begin using Amazon Web Services immediately, with all planned capacity planned to be operational by the end of 2026 and the possibility of further expansion in 2027. Amazon plans to deploy hundreds of thousands of chips in server clusters to power ChatGPT responses and train future OpenAI models.
Altman has said that, in the future, he wants OpenAI to add 1 gigawatt of computing capacity every week, an astronomical amount, as each gigawatt currently requires a capital cost of over $40 billion.
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