On Monday morning this week, Amazon’s stock rose around 5% after announcing that they have signed a $38 billion deal with OpenAI to allow them access to hundreds of thousands of AI chips produced by Nvidia. This deal is set to last for 7 years and should provide the company more freedom with their AI’s operation.
Thanks to this deal, OpenAI will be able to run its AI on Amazon’s AI servers that make use of Nvidia chips and GPUs. They plan on making use of the processing power immediately and plan on scaling up over the course of the next three years.
This deal with Amazon is one of many deals OpenAI has been making recently with chip-making companies and cloud server providers. They have made a $300 billion deal with Oracle and have had several agreements with CoreWeave that come out to a total cost of well over $22 billion.
With the current rate that OpenAI is spending on deals and on AI development and upkeep, they are expected to pay well over $1 trillion by the end of the decade. Many have been questioning whether the company will be able to keep up with the cost or if it will go bankrupt under the demands of innovation.
With OpenAI planning on developing 30 Gigawatts of computing power, which, for reference, could power the homes of 25 million people, OpenAI has an ambitious plan to become the largest-scale AI operation on the planet.
OpenAI is swiftly becoming the frontrunner in the race for the development of AI, and I am excited to see what new innovations can be achieved through the increase in development power.
