"OpenAI has signed a multi-year deal with Amazon to buy $38 billion worth of AWS cloud infrastructure to train its models and serve its users. The deal is yet another sign of the AI industry becoming increasingly entangled, with OpenAI now at the center of major partnerships with industry players including Google, Oracle, Nvidia, and AMD. The AWS agreement is also notable because OpenAI rose to prominence in part through its partnership with Microsoft-Amazon's biggest cloud rival."
"Many now worry that the race to build ever-more infrastructure-and the unusual financial agreements behind the deals-are a sign of an AI bubble. Between 2026 and 2027, companies are projected to spend upwards of $500 billion on AI infrastructure in the US, according to reporting by financial journalist Derek Thompson. Patrick Moorhead, chief analyst at Moor Insights & Strategy, says he believes that big tech companies and AI startups have a genuine need for more capacity and see a path to turn compute into profit."
OpenAI signed a multi-year deal with Amazon to buy $38 billion of AWS cloud infrastructure to train models and serve users. The agreement places OpenAI amid partnerships with Google, Oracle, Nvidia, and AMD while reducing dependence on any single cloud provider. Amazon will build custom infrastructure using Nvidia GB200 and GB300 chips for training and inference and will provide access to hundreds of thousands of NVIDIA GPUs with potential expansion to tens of millions of CPUs. The deal occurs alongside Amazon's backing of Anthropic and competition with Microsoft, amid projections of massive AI infrastructure spending and bubble concerns.
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