OpenAI, the company behind ChatGPT, has made a big new deal with Amazon! They will spend $38 billion over the next seven years to use Amazon’s cloud services. This business will help OpenAI get the powerful computers it needs to train and run its artificial intelligence (AI) systems.
Why Did OpenAI Make This Deal?
AI needs a lot of computer power to learn and work. OpenAI’s CEO, Sam Altman, said that the business wants to build 30 gigawatts of computer power — enough to give electricity to 25 million U.S. homes! To make this possible, OpenAI will use Amazon Web Services (AWS), Amazon’s big cloud computing system.
What Does Amazon Get?
This deal is also great news for Amazon. Many people thought Amazon was falling behind Microsoft and Google in the AI race. But this new deal shows that Amazon is still a strong player. After the news came out, Amazon’s stock price hit a record high, adding about $140 billion to its market value.
How Will It Work?
OpenAI will start using Amazon’s cloud computers right away. By the end of 2026, all the planned computing systems will be ready, with even more to come later. Amazon will use special computer chips, like Nvidia’s GB200 and GB300, to help OpenAI train new and smarter AI models — like future versions of ChatGPT.
Other Big Partnerships
Even though OpenAI works closely with Microsoft, it’s now spreading out to other businesses too. It has made deals with Google and Oracle for more computer power. Recently, OpenAI also agreed to buy $250 billion worth of Microsoft’s Azure cloud services.
Big Dreams and Big Queries
OpenAI’s goals are massive. Sam Altman wants to add 1 gigawatt of computer power every week — but that would cost more than $40 billion each time! Experts are wondering how OpenAI will pay for all this since the company still loses money, even though it expects to earn $20 billion in income this year.
What’s Next for OpenAI?
After changing how the company is achieved last week, OpenAI now has more control over its money and plans. Some reports say OpenAI might even develop a public company worth $1 trillion in the future.
