"AWS will begin selling OpenAI's models to its cloud customers, the company announced on Tuesday, one day after Microsoft agreed to end the exclusive reselling arrangement that had given Azure sole access to OpenAI's technology for the first three years of the generative AI era."
"OpenAI simultaneously committed to spending $100 billion on AWS computing power and Trainium chips over eight years, consuming two gigawatts of capacity."
"The question the deal answers is not whether OpenAI's models are good enough to sell on rival clouds. The question is whether OpenAI can sell enough of them, anywhere, to justify what it has promised to spend."
Amazon Web Services will start selling OpenAI's models to cloud customers after Microsoft ended its exclusive reselling rights. This follows Amazon's $50 billion investment in OpenAI's funding round. OpenAI committed to spending $100 billion on AWS services over eight years. The deal raises questions about OpenAI's ability to meet revenue targets and justify its spending commitments, especially given reports of missed revenue and user targets amid significant infrastructure costs.
Read at TNW | Amazon
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