Mentioned:
OpenAI is partnering up with Amazon. And they’re preparing to spend tens of billions of dollars on cloud hosting.
What’s happening:
- OpenAI has committed to spending $38B USD with Amazon (NASDAQ: AMZN) in a new cloud computing partnership
By the numbers:
- OpenAI will spend $38B USD with Amazon Web Services over 7 years as part of the new deal
Why it matters:
- This is the first time ever OpenAI has done a cloud hosting deal with a publicly traded company outside of Microsoft (NASDAQ: MSFT)
Going deeper:
- The new deal with OpenAI is the largest deal that Amazon Web Services has ever done with an artificial intelligence company
- OpenAI has been aggressively striking deals with publicly traded companies to rapidly build out more computing capacity to train and scale new artificial intelligence models, including landing a strategic investment from Nvidia (NASDAQ: NVDA) and committing to buy billions of dollars of GPUs from AMD (NASDAQ: AMD)
