OpenAI signed a $38 billion deal with Amazon.

OpenAI, the creator of ChatGPT, has signed a $38 billion cloud services deal with Amazon that will last for seven years. This agreement represents a significant step taken to support the company's artificial intelligence goals following last week's restructuring.

The agreement will provide OpenAI access to hundreds of thousands of Nvidia graphics processing units for training and running AI models. This situation highlights the insatiable appetite for computing power in the artificial intelligence industry, as companies are in a fierce race to develop systems that can surpass human intelligence.

OpenAI CEO Sam Altman noted that the start-up has committed to investing $1.4 trillion to develop 30 gigawatts of computing resources, a sufficient amount of energy to meet the electricity needs of approximately 25 million American homes.

The agreement also serves as a significant vote of confidence at a time when some investors believe that Amazon Web Services is falling behind its rivals Microsoft and Google in the AI race. However, strong growth reported in the September quarter has somewhat alleviated these concerns.

Amazon shares reached an all-time high on Monday, adding approximately $140 billion to the company's market value.