"What's your top-line takeaway from its deal with AWS? Alistair: Amazon couldn't work with OpenAI models until recently. Microsoft redid its big agreement with OpenAI last week, and as part of that the startup has more freedom to sign deals with other cloud providers. One of the first things you'd do in that situation is call AWS for capacity. It's still the big dog in cloud!"
"Or perhaps I'm too small-minded (hence why VCs aren't throwing billions at me). Alistair: What OpenAI CFO Sarah Friar said earlier this year was illuminating. The company has to choose which projects because it lacks computing resources. For any ambitious leader, being held back simply by a shortage of computers must be maddening. From that angle, signing as many AI-cloud deals as possible seems rational."
OpenAI signed a $38 billion agreement with Amazon Web Services to secure additional cloud compute capacity. Microsoft renegotiated its major agreement with OpenAI, enabling the startup to contract with other cloud providers and prompting an AWS capacity engagement. OpenAI reports more than $1 trillion of compute deals on the books and faces real computing shortages that force project selection. CFO Sarah Friar noted limited computing resources compel choices among initiatives. For ambitious leaders, compute scarcity drives rapid pursuit of cloud capacity. The aggressive buying strategy raises questions about spending limits, revenue timelines, and enterprise adoption momentum.
Read at Business Insider
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