Amazon Partners With ChatGPT-Maker OpenAI In $38 Billion Deal: Here’s What It Means

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ChatGPT’s owner, OpenAI, has announced its multi-year partnership with Amazon Web Services (AWS), which is worth $38 billion. As per the tech giant, AWS will provide infrastructure to run and manage OpenAI’s Artificial Intelligence workload, including ChatGPT, for a period of seven years.  Also Read: How To Get ChatGPT Go Subscription For Free In India: Quick Steps Here

As per the blog post, OpenAI is said to gain hundreds of thousands of NVIDIA GPUs through AWS’s data centres under this agreement. How will these GPUs be used? The AI giant suggests that these GPUs will be used in almost everything, including ChatGPT’s real-time responses and the training of the next generation of AI models. Also Read: Tim Cook Drops A Hint: Apple’s Next Big AI Move Could Change How Siri Works

OpenAI’s CEO Sam Altman said, “Scaling frontier AI requires massive, reliable compute. Our partnership with AWS strengthens the broad compute ecosystem that will power this next era and bring advanced AI to everyone.”

For those who are unaware of AWS, know that Amazon Web Services is known for managing large-scale AI systems across different categories, including compute, storage, databases, networking, machine learning, and analytics. 

OpenAI Amazon Partnership: Why Is It Important?

So far, OpenAI has relied almost entirely on Microsoft’s Azure cloud services. But after a recent restructuring that gave OpenAI more operational freedom, it began forming new partnerships. This collaboration with AWS gives OpenAI the flexibility it needs to expand faster and also eases the financial and operational pressure of depending on a single partner.

“OpenAI will immediately start utilising AWS compute as part of this partnership, with all capacity targeted to be deployed before the end of 2026, and the ability to expand further into 2027 and beyond,” the report mentioned. 

The partnership isn’t just about computing power, and it also shows a new phase in the AI race. Amazon will benefit from a major new client using its infrastructure, while OpenAI gains the scale it needs to train increasingly complex models. For everyday users, this could mean faster, smarter, and more reliable versions of ChatGPT in the coming years.