OpenAI signs a $38 billion deal with Amazon to develop cloud computing
United States of AmericaThe creator of CHAT GPT continues to expand his alliances with major technology companies.
This computing power will allow the company founded by Sam Altman to continue leading the race for the development of artificial intelligence (AI).
Amazon's cloud computing subsidiary, which has hundreds of data centers with enormous computing power, will allow OpenAI to access hundreds of thousands of Nvidia's latest-generation microprocessors.
The deal comes after OpenAI has secured some of the largest agreements in corporate history in recent weeks. It has signed deals with AMD and Nvidia worth hundreds of thousands of dollars to develop its data centers and guarantee its supply of advanced chips. It also recently signed a multi-million dollar agreement with Oracle to develop the data centers necessary to have enough computing power to continue training its artificial intelligence (AI) with millions of operations per second.
The company has committed to investing $1.4 trillion in infrastructure to develop and enhance its AI models, an unprecedented investment that has raised concerns about a possible bubble, Bloomberg explains.
The agreement also illustrates the profound transformation of OpenAI, a small startup developing algorithms, into one of the leading companies in AI, reshaping the technology sector. Last week, OpenAI, founded by Sam Altman, announced a change in its corporate structure , transitioning from a non-profit organization to a for-profit company.
Last week it was revealed that OpenAI is preparing for an initial public offering (IPO) that could value Sam Altman's company at up to one trillion dollars, according to Reuters. If so, the artificial intelligence (AI) giant could stage the largest IPO in history.
Amazon, which last week announced during its earnings presentation that it will allocate $125 billion this year to further develop its data centers to advance AI, is gradually leveraging its advantage in building and managing these cloud computing infrastructures.
“The rapid advancement of AI technology has generated an unprecedented demand for computing power. As providers of cutting-edge models seek to take their models to new levels of intelligence, they are increasingly turning to AWS because of the performance, scalability, and security it offers,” the companies said in a statement.
“ Scaling cutting-edge AI requires massive and reliable computing power ,” said Sam Altman, co-founder and CEO of OpenAI. “Our partnership with AWS strengthens the broad computing ecosystem that will power this next era and make advanced AI accessible to everyone.”
AWS, Amazon's cloud computing subsidiary, is the world's leading provider of computing power. But until this Monday, AWS had been an exception, as virtually every other major US cloud computing company joined those building or adapting data centers to support OpenAI.
"As OpenAI continues to push the boundaries of what's possible, AWS's world-class infrastructure will serve as a fundamental pillar for its AI ambitions," said Matt Garman, CEO of AWS.
Microsoft, OpenAI's largest investor and until recently its sole cloud computing provider, recently announced a deal to invest approximately $250 billion in its Azure cloud unit. Oracle signed another $300 billion contract to provide data centers to OpenAI, and earlier this year OpenAI revealed that Google Cloud Platform was among the companies powering ChatGPT. The startup also has a $22.4 billion deal with CoreWeave, a leader among the new generation of so-called neo-clouds, which offer services to AI developers, according to Bloomberg.
OpenAI's agreements with all these companies show the circular relationships that are being forged throughout the artificial intelligence sector, which raise the risk of a bubble.