OpenAI and Amazon Form Power Alliance with $38 Billion Deal

Seattle — OpenAI and Amazon have signed a $38 billion deal, allowing the developer of ChatGPT to run its artificial intelligence systems on Amazon's cloud computing services.

As part of this agreement, OpenAI will gain access to "hundreds of thousands" of Nvidia's specialized artificial intelligence chips through Amazon Web Services.

The agreement came just a week after OpenAI altered its longstanding partnership with Microsoft, as Microsoft is no longer the startup's sole cloud provider.

California and Delaware regulators also granted permission last week for OpenAI, which was established as a nonprofit organization, to proceed with a new business structure plan. This will facilitate the company's capital raising and profit generation.

Amazon announced on Monday, "The rapid advancement of artificial intelligence technology has created unprecedented demand for computing power." It was noted that OpenAI would start utilizing AWS computing capacity immediately within the framework of this partnership, with the goal of fully deploying all capacity by the end of 2026. Additionally, the potential for expansion beyond 2027 was also emphasized.