OpenAI and Amazon formed a partnership with a $38 billion deal.

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

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

The deal comes just a week after OpenAI modified its long-standing partnership with Microsoft; now Microsoft is no longer the startup's sole cloud provider.

The regulators in California and Delaware also granted permission last week for OpenAI, which was established as a non-profit organization, to proceed with plans to create a new business structure. This will facilitate the company's fundraising and profit-making.

Amazon stated on Monday, “The rapid advancement of artificial intelligence technology has created unprecedented demand for computing power.” It was noted that OpenAI will start using AWS computing capacity immediately under this partnership, with the goal of rolling out all capacity by the end of 2026. Additionally, the possibility of expansion beyond 2027 was emphasized.