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Title: OpenAI signs $38 billion cloud contract with Amazon

Link: https://www.engadget.com/ai/openai-signs-38-b...

When OpenAI announced last week the end of its drawn-out corporate
restructuring, one of the freedoms the company had managed to negotiate for
itself was the ability to more easily sign cloud contracts with MicrosoftΓÇÖs
competitors. With the new agreement in place, the company waived its first
right of refusal to be OpenAIΓÇÖs compute provider. OpenAI is wasting no time
taking advantage of that freedom.

On Monday, Amazon announced a new multi-year, $38 billion cloud partnership
with OpenAI. ΓÇ£Starting immediately,ΓÇ¥ Amazon Web Services will provide the
company with access to ΓÇ£thousandsΓÇ¥ of NVIDIA GB200 and GB300 GPUs for
inference and training its next-generation models. Amazon expects to deploy
all the capacity OpenAI has agreed to buy by the end of 2026, with the option
to purchase additional capacity in 2027 and beyond. Amazon says the
partnership ΓÇ£will help millions of users continue to get value from
ChatGPT.ΓÇ¥

Of course, the question is how OpenAI will pay for all of its cloud
commitments. The Information recently reported the company was generating
about $12 billion in annualized revenue. As part of just its restructuring
agreement, the company agreed to spend $250 billion on Azure services from
Microsoft. It also has a revenue-sharing agreement with the tech giant that
will continue when and if OpenAI is able to develop artificial general
intelligence.

This article originally appeared on Engadget at
https://www.engadget.com/ai/openai-signs-38-b...
amazon-151821384.html?src=rss

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