Who needs just one tech giant when you can have them all?
OpenAI, the company behind ChatGPT, has inked a massive $38 billion deal with Amazon.
The deal gives it access to AWS’s powerful cloud infrastructure — and more importantly, Nvidia chips to train its ever-hungry AI models.
It’s a bold move that signals a shift away from its long-standing reliance on Microsoft.
Just months ago, OpenAI restructured, moving away from its non-profit roots and reshaping its partnership with Microsoft to gain more independence.
OpenAI Expands Computing
“Scaling frontier AI requires massive, reliable compute,” said CEO Sam Altman.
He described the deal as a key step toward “bringing advanced AI to everyone.”
The AI arms race is heating up — OpenAI’s already struck over $1 trillion in deals this year with Oracle, Broadcom, AMD, and Nvidia.
But that ambition comes at a cost: Microsoft’s recent filings suggest OpenAI lost $12 billion last quarter.
Still, investors are buzzing — Amazon shares jumped to an all-time high after the announcement.
As Kim Forrest of Bokeh Capital puts it, “OpenAI’s path to leadership is paved with as much computing power as it can get its hands on.”
An AI gold rush or a bubble about to burst? The only certainty — it’s getting very expensive to be this smart.
