The artificial intelligence triumphant will be able to run AI workloads across Amazon Web Services (AWS) cloud infrastructure under a new $ 38 billion agreement that OpenAI has signed with Amazon.
The e-commerce giant’s first major AI push came with the seven-year deal announced on Monday, which came after a restructuring last week.
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The ChatGPT maker will have access to thousands of Nvidia graphics processors to train and test its artificial intelligence models thanks to the new agreement.
According to experts, this does not mean OpenAI can’t use AWS-hosted websites, including those hosted by The New York Times, Reddit, and United Airlines.
According to the statement, “AWS’s ability to scrape content from AWS-hosted websites [can be done for anything that is already publicly readable.” According to Joshua McKenty, CEO of the AI detection company PolyguardAI, “this is strictly speaking about the economics of rent versus buy for GPU]graphics processing unit] capacity.”
The agreement also serves as a significant endorsement of the e-commerce giant’s cloud unit, AWS, which some investors believed had lost to rivals Microsoft and Google in the artificial intelligence (AI) race. The business’s impressive growth in the September quarter tempered those fears.
By the end of 2026, OpenAI will have access to all planned capacity, with room to grow even further in 2027 and beyond.
According to the companies, Amazon intends to distribute hundreds of thousands of chips, including Nvidia’s GB200 and GB300 AI accelerators, in data clusters designed to train OpenAI’s upcoming wave of models and power ChatGPT’s responses.
On Amazon Bedrock, which offers a variety of AI models for businesses that use AWS, OpenAI models are already available.
With the most drastic restructuring, OpenAI’s previous non-profit roots were further eroded, as was Microsoft’s first right to refuse to provide services under the new arrangement.
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Even though CEO Andy Jassy claimed in an earnings call on Thursday that the layoffs were not caused by AI, Amazon made the announcement about an AI investment days after the company fired 14, 000 employees.
According to Jassy, “the announcement we made a few days ago was not really financially driven, nor even not even completely AI-driven,” at least at this point.
Sam Altman, the startup’s CEO, stated that the startup is dedicating $1.4 trillion to developing 30 gigawatts of computing power, enough to power roughly 25 million homes in the United States.
According to Altman, “massive, reliable compute is required to scale the frontier AI.” The broad compute ecosystem that will power this new era and provide for everyone is strengthened by our partnership with AWS.
The sheer volume of energy needed for AI data centers to operate is getting more and more concerning. By 2028, according to the Lawrence Berkeley National Laboratory, AI data centers will consume up to 12% of US electricity.
According to an AP/NORC poll conducted in October, 41 percent of Americans are particularly concerned about the impact of AI on the environment, while 30 percent are concerned as the industry expands its footprint in other US.
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Fears that the AI boom may be exploding due to falling valuations of AI companies and their significant spending commitments, totaling more than $1 trillion for OpenAI, have sparked fears.
According to a Reuters report from June, OpenAI has already contracted with Google to provide it with cloud services. Additionally, it reportedly agreed to purchase $300 billion worth of computer hardware for roughly five years.
While Microsoft and OpenAI’s partnership, which the two formed in 2019, has helped it to take the top spot among its Big Tech competitors in the AI market, both companies have recently started reducing their reliance on one another.
Amazon and OpenAI had no immediate comment options.
Source: Aljazeera
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