WASHINGTON: ChatGPT-maker OpenAI signed a $38 billion deal Monday with Amazon&#39;s AWS cloud computing arm, as the artificial intelligence company continues on a major partnership spree that has also included Oracle, Broadcom, AMD and chip-making juggernaut Nvidia.&nbsp;Under the seven-year agreement, OpenAI, which is partly owned by AWS&#39;s archrival Microsoft, will gain access to computing resources including hundreds of thousands of state-of-the-art Nvidia GPUs, the crucial component of the generative artificial intelligence revolution.&nbsp;The deal, which will grow over its multi-year term, will also give access to tens of millions of more conventional CPUs that will be used for the everyday deployment of so-called agentic AI.&nbsp;&quot;Scaling frontier AI requires massive, reliable compute,&quot; said OpenAI co-founder and CEO Sam Altman in a joint statement. &quot;Our partnership with AWS strengthens the broad compute ecosystem that will power this next era and bring advanced AI to everyone.&quot;&nbsp;OpenAI will immediately begin utilizing AWS computing, with all capacity targeted to be used before the end of 2026, and the ability to expand further in the coming years.&nbsp;By some estimates, OpenAI has inked approximately $1 trillion worth of infrastructure deals in 2025, including a $300 billion Oracle deal and a $500 billion Stargate project with Oracle and SoftBank.&nbsp;The massive infrastructure spending comes as revenues in 2025 are expected to be in the tens of billions this year, a very high figure for a startup, but far from the amount needed to recoup the costs of computing needed to power OpenAI&#39;s powerful chatbots.&nbsp;The deal was the first one since OpenAI formalized its new structure, in which the company has a freer hand to move away from its non-profit origins and deliver profits for its investors.&nbsp;The partnership with AWS builds on existing collaboration between the companies, with OpenAI&#39;s more open-source models already available on Amazon servers.

Artificial Intelligence

OpenAI signed a $38 billion, seven-year deal with AWS, gaining access to Nvidia GPUs and CPUs to scale AI. The partnership expands OpenAI’s infrastructure, supporting advanced AI deployment amid record multi-billion-dollar tech deals in 2025.

OpenAI signs $38 bn infrastructure deal with cloud giant AWS

SAN FRANCISCO: OpenAI, the company behind ChatGPT, announced Monday it is teaming up with chip giant Broadcom to design and build its own specialized computer processors for artificial intelligence.&nbsp;The partnership was the latest in a series of recent announcements by OpenAI as it seeks to strengthen its position as the preeminent company of the generative AI revolution that began with the release of ChatGPT in November 2022.&nbsp;In the past few weeks, under the leadership of CEO Sam Altman, OpenAI has signed huge investments in data centers and AI chips with US companies Nvidia and AMD, as well as with South Korea&#39;s Samsung and SK Hynix.&nbsp;The partnerships come even as there are no real signs that the AI business is close to breaking even, despite its strong growth.&nbsp;The deals to build out AI&#39;s immense infrastructure needs also threaten further stress on electricity providers, with AI data centers demanding significant power and resources to deliver the computing necessary for the expected usage of the technology.&nbsp;The financial terms of the deal were not part of the announcements and remain unclear for many of the recent deals, drawing some skepticism from observers who worry the AI frenzy may have created a financial bubble, posing a risk to investors.&nbsp;By designing its own chips rather than relying solely on off-the-shelf processors, OpenAI says it can build hardware specifically tailored to how its AI models work, potentially making them faster and more powerful.&nbsp;&quot;Partnering with Broadcom is a critical step in building the infrastructure needed to unlock AI&#39;s potential and deliver real benefits for people and businesses,&quot; said Altman, OpenAI&#39;s co-founder and chief executive.&nbsp;The custom processors will be installed in data centers operated by OpenAI and its partners to keep up with soaring worldwide demand for AI services.&nbsp;OpenAI has grown rapidly to more than 800 million people using its services weekly since its 2022 launch.&nbsp;Broadcom, which will manufacture and help develop the chips, called the collaboration &quot;a pivotal moment&quot; in AI development.

OpenAI is partnering with Broadcom to develop custom AI chips, aiming to boost performance and reduce reliance on standard processors. This move supports growing AI demands despite financial concerns and energy challenges.

Articles tagged with "CEO Sam Altman"

OpenAI signs $38 bn infrastructure deal with cloud giant AWS

OpenAI announces Broadcom partnership to build AI chips