OpenAI has signed a major agreement to purchase $38 billion worth of capacity from Amazon Web Services (AWS). Under the agreement announced on Monday (November 3), OpenAI will immediately begin running its AI workloads on AWS infrastructure, initially leveraging hundreds of thousands of Nvidia GPUs within existing US data centres. The partnership includes plans for Amazon to build out additional infrastructure capacity for OpenAI in the coming years.
OpenAI CEO Sam Altman emphasised the necessity of a broad compute ecosystem for the next generation of AI.
“Scaling frontier AI requires massive, reliable compute. Our partnership with AWS strengthens the broad compute ecosystem that will power this next era and bring advanced AI to everyone,” Altman said.
Meanwhile, Amazon CEO Andy Jassy said in a post on X (Twitter) that OpenAI will train their AI models on AWS infrastructure.
“New multi-year, strategic partnership with @OpenAI will provide our industry-leading infrastructure for them to run and scale ChatGPT inference, training, and agentic AI workloads,” Jassy said.
“Allows OpenAI to leverage our unusual experience running large-scale AI infrastructure securely, reliably, and at scale. OpenAI will start using AWS’s infrastructure immediately and we expect to have all of the capacity deployed before end of next year-- with the ability to expand in 2027 and beyond,” he added.
OpenAI loosens reliance on Microsoft for compute needs
For years, OpenAI operated under an exclusive cloud agreement with Microsoft, which first backed the company in 2019 and has invested a total of $13 billion. In January, Microsoft signaled an end to that exclusive arrangement, shifting to an agreement where it retains the right of first refusal for new OpenAI cloud requests.
The massive deal is the latest in a number of deals that the $500 billion artificial intelligence startup has struck with various tech giants, suggesting that it is diversifying its computing power beyond its long-time exclusive partner, Microsoft.
The company has recently announced buildout agreements totaling roughly $1.4 trillion with various partners, including Nvidia, Broadcom, Oracle, and Google.
OpenAI CEO Sam Altman emphasised the necessity of a broad compute ecosystem for the next generation of AI.
“Scaling frontier AI requires massive, reliable compute. Our partnership with AWS strengthens the broad compute ecosystem that will power this next era and bring advanced AI to everyone,” Altman said.
Meanwhile, Amazon CEO Andy Jassy said in a post on X (Twitter) that OpenAI will train their AI models on AWS infrastructure.
“New multi-year, strategic partnership with @OpenAI will provide our industry-leading infrastructure for them to run and scale ChatGPT inference, training, and agentic AI workloads,” Jassy said.
“Allows OpenAI to leverage our unusual experience running large-scale AI infrastructure securely, reliably, and at scale. OpenAI will start using AWS’s infrastructure immediately and we expect to have all of the capacity deployed before end of next year-- with the ability to expand in 2027 and beyond,” he added.
OpenAI loosens reliance on Microsoft for compute needs
For years, OpenAI operated under an exclusive cloud agreement with Microsoft, which first backed the company in 2019 and has invested a total of $13 billion. In January, Microsoft signaled an end to that exclusive arrangement, shifting to an agreement where it retains the right of first refusal for new OpenAI cloud requests.
The massive deal is the latest in a number of deals that the $500 billion artificial intelligence startup has struck with various tech giants, suggesting that it is diversifying its computing power beyond its long-time exclusive partner, Microsoft.
The company has recently announced buildout agreements totaling roughly $1.4 trillion with various partners, including Nvidia, Broadcom, Oracle, and Google.
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