OpenAI will pay $38 billion to use Amazon Web Services cloud capacity, part of a roughly $1.4 trillion spending spree from the start-up.
The company will start using AWS processors immediately, but the money will eventually fund Amazon building new infrastructure to support OpenAI’s use.
The deal allows OpenAI to move away from its sole dependence on Microsoft, its biggest investor and until recently its only cloud provider. It is also a major boost for Amazon, whose cloud revenues have not kept pace with rivals.
Amazon stocks closed at a record high Monday. But the deal will not soothe fears of a bubble: To meet its projections, OpenAI will have to grow faster than any company in history, Epoch AI reported.