OpenAI earlierAnnounceOpenAI has reached a multi-year, $380 billion cloud computing agreement with Amazon, marking their first formal collaboration to meet OpenAI's rapidly growing AI computing needs through AWS cloud services.
Provide NVIDIA accelerated computing power by the end of 2026 to lock in the development of model training and agent AI.
Under the agreement, AWS will assist in meeting OpenAI's massive computing needs. Amazon anticipates that all computing capacity as part of this agreement will be available to OpenAI by the end of 2026, enabling it to quickly access the large number of NVIDIA accelerator chips deployed in AWS data centers.
This seven-year agreement will enable OpenAI to leverage Amazon's data center computing resources to train new AI models and handle the large number of inference requests for the ChatGPT service. Furthermore, OpenAI can utilize Amazon's own CPUs (such as Graviton) to power "agentic AI" applications, allowing more AI applications to autonomously complete complex tasks assigned by users.
AWS faces growth pressures; Anthropic's alliance with Google raises concerns.
This deal is of great strategic significance to Amazon. Although AWS remains the world's largest cloud provider, it has faced competitive pressure from Microsoft and Google in recent years. The latter two, with their deep partnerships with AI customers, have seen their cloud revenue growth rate begin to surpass AWS's.
AWS recently announced its plans to aggressively expand its data centers during its earnings call, and its cloud business grew by 20% in the latest quarter, its fastest growth rate since 2022.
Prior to this, Amazon's main bet in the AI field was on Anthropic, a competitor of OpenAI. Currently, Amazon is not only Anthropic's main cloud provider, but has also invested $80 billion in it. Recently, Amazon opened an $110 billion data center campus for Anthropic in Indiana. Anthropic is also the largest customer of Amazon's self-developed AI chip Trainium.
However, Anthropic just announced last month a multi-billion dollar deal with Google.cooperation agreementThe company will use up to one million Google TPUs, sparking market speculation about whether Anthropic plans to move some of its new workloads out of AWS.
Therefore, the successful signing of the agreement with OpenAI is seen as a "key first step" for Amazon to ensure that its cloud business can benefit from the AI wave.
OpenAI's cloud commitments have reached nearly $6000 billion after ending its exclusive deal with Microsoft.
The report points out that Amazon has been unable to sell cloud services to OpenAI for many years because OpenAI has an exclusive cloud computing partnership with Microsoft.
However, OpenAI partnered with Microsoft in October of this year.Re-adjusting the contractOpenAI ended its exclusive partnership with Microsoft and embarked on a series of external collaborations to expand its AI computing resources. This latest agreement with Amazon involves $380 billion worth of computing resources, compared to OpenAI's $3000 billion agreement with Oracle and its agreement with Microsoft.$2500 billion AI computing power procurement agreementAlthough the scale is relatively small, it means that Amazon will increase AWS cloud service revenue by leveraging OpenAI's demand for AI computing power.
On the other hand, OpenAI also signed a cooperation agreement with Google earlier this year, but the scale of the procurement by both parties has not been disclosed.
OpenAI projects it will generate $130 billion in revenue by 2025, meaning its sales must continue to grow exponentially to cover its massive computing demands. CEO Sam Altman recently stated that OpenAI is facing a severe shortage of AI computing power, and that its revenue growth is expected to accelerate as more computing capacity becomes available.
However, according to Microsoft's recent financial report, OpenAI's net loss in the last quarter may have reached as high as $115 billion. Even if OpenAI achieves $130 billion in revenue this year, it may still remain unprofitable overall.
