OpenAI Signs $38 Billion Cloud Deal With Amazon

OpenAI will pay Amazon $38 billion for computing power in a seven-year deal that marks the companies' first partnership. Amazon expects all of the computing capacity negotiated as part of the agreement will be available to OpenAI by the end of next year. The ChatGPT maker will train new AI models using Amazon's data centers and use them to process user queries. The deal is small compared with OpenAI's $300 billion agreement with Oracle and its $250 billion commitment to Microsoft. OpenAI ended its exclusive cloud-computing partnership with Microsoft last month and has since signed almost $600 billion in new cloud commitments. Amazon Web Services is the industry's largest cloud provider, but Microsoft and Google have reported faster cloud-revenue growth in recent years after capturing new demand from AI customers.

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