OpenAI signs $38 billion cloud contract with Amazon

OpenAI, having recently restructured, gained the freedom to contract with cloud providers beyond Microsoft. Amazon announced a multi-year, $38 billion cloud partnership with OpenAI, providing access to NVIDIA GPUs. AWS will supply thousands of GB200 and GB300 GPUs for training OpenAI's future models. Amazon plans to fully deploy the agreed-upon capacity by the end of 2026, with options for more in later years. The partnership aims to improve ChatGPT for millions of users. A key question is how OpenAI will finance these large cloud commitments. OpenAI's annualized revenue is reportedly around $12 billion. As part of its Microsoft agreement, OpenAI committed to spending $250 billion on Azure services. They also have a revenue-sharing agreement with Microsoft, especially regarding artificial general intelligence. This partnership signifies a strategic shift towards diversifying OpenAI's cloud infrastructure.