{"id":119850,"date":"2025-11-03T18:53:08","date_gmt":"2025-11-03T18:53:08","guid":{"rendered":"https:\/\/www.newsbeep.com\/ie\/119850\/"},"modified":"2025-11-03T18:53:08","modified_gmt":"2025-11-03T18:53:08","slug":"openai-signs-38bn-cloud-computing-deal-with-amazon-openai","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ie\/119850\/","title":{"rendered":"OpenAI signs $38bn cloud computing deal with Amazon | OpenAI"},"content":{"rendered":"

OpenAI has signed a $38bn (\u00a329bn) deal to use Amazon<\/a> infrastructure to operate its artificial intelligence products, as part of a more than $1tn spending spree on computing power.<\/p>\n

The agreement with Amazon Web Services means OpenAI<\/a> will be able to use AWS datacentres, and the Nvidia chips inside them, immediately.<\/p>\n

Last week, OpenAI\u2019s chief executive, Sam Altman, said his company had committed to spending $1.4tn on AI infrastructure, amid concerns over the sustainability of the boom in using and building datacentres. These are the central nervous systems of AI tools such as ChatGPT<\/a>.<\/p>\n

\u201cScaling frontier AI requires massive, reliable compute,\u201d Altman said on Monday. \u201cOur partnership with AWS strengthens the broad compute ecosystem that will power this next era and bring advanced AI to everyone.\u201d<\/p>\n

OpenAI said the deal would give it access to hundreds of thousands of Nvidia graphics processors to train and run its AI models. Amazon plans to use the chips in data clusters that will power ChatGPT\u2019s responses and train OpenAI\u2019s next wave of models, the companies said.<\/p>\n

Matt Garman, the chief executive of AWS, said OpenAI continued to push the boundaries of what was possible and that Amazon\u2019s infrastructure would serve as a backbone for its ambitions.<\/p>\n

OpenAI is committed to developing 30 gigawatts of computing resources \u2013 enough to power roughly 25 million US homes.<\/p>\n

Last week, OpenAI said it had converted its main business<\/a> into a for-profit corporation as part of a reorganisation that valued the startup at $500bn. Its longtime backer Microsoft will have a roughly 27% stake in OpenAI\u2019s new for-profit corporation.<\/p>\n

The race for computing power by AI companies has raised concerns among some market watchers about how it will be paid for. OpenAI\u2019s annual revenue is about $13bn, according the Financial Times, a figure dwarfed by its $1.4tn infrastructure commitment. Other datacentre deals signed by OpenAI include a $300bn agreement with the US company Oracle.<\/p>\n

Altman hit back at the spending concerns during a podcast appearance with the Microsoft chief executive, Satya Nadella, saying \u201cenough\u201d to a question from the host, the US investor Brad Gerstner, about the gap between OpenAI\u2019s revenue and its infrastructure commitments.<\/p>\n

Altman said OpenAI made \u201cwell more\u201d revenue than the reported $13bn, without specifying a number. He added: \u201cI just \u2013 enough \u2026 I think there\u2019s are a lot of people who would love to buy OpenAI shares.\u201d<\/p>\n

Analysts at the US investment bank Morgan Stanley estimate that global spending on datacentres will reach nearly $3tn between now and 2028. They said half of that spending would be covered by the big US tech companies and the rest would come from sources such as the private credit market, a growing part of the shadow banking sector<\/a> that is raising concerns at the Bank of England<\/a> and elsewhere.<\/p>\n","protected":false},"excerpt":{"rendered":"OpenAI has signed a $38bn (\u00a329bn) deal to use Amazon infrastructure to operate its artificial intelligence products, as…\n","protected":false},"author":2,"featured_media":119851,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[220,218,219,61,60,80],"class_list":{"0":"post-119850","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-artificial-intelligence","8":"tag-ai","9":"tag-artificial-intelligence","10":"tag-artificialintelligence","11":"tag-ie","12":"tag-ireland","13":"tag-technology"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/119850","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/comments?post=119850"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/119850\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media\/119851"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media?parent=119850"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/categories?post=119850"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/tags?post=119850"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}