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OpenAI and Amazon ink $38B cloud computing deal


OpenAI isn’t done securing the AI infrastructure it needs to rapidly scale agentic workloads. The ChatGPT-maker on Monday said it has reached a deal with Amazon to buy $38 billion in cloud computing services over the next seven years.

OpenAI said it will immediately start using AWS compute, with all capacity targeted to be deployed before the end of 2026, with the ability to expand further into 2027 and beyond.

The deal follows OpenAI’s restructuring last week, which freed the company from having to secure Microsoft’s approval to buy computing services from other firms.

OpenAI’s deal with Amazon is part of its larger mission to grow computing power, spending more than $1 trillion over the next decade. The company has announced new data center buildouts with Oracle, SoftBank, the United Arab Emirates, and others. OpenAI has also secured deals with chipmakers Nvidia, AMD, and Broadcom.

To some analysts, the increased investment form OpenAI and other tech giants signals that the industry is heading towards an AI bubble, wherein massive sums are spent beefing out an unproven, and potentially dangerous, technology with no clear sign of a meaningful return on investment.

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