OpenAI Invests $38 Billion in AWS Services to Boost the Race for Supercomputing and Artificial Intelligence

OpenAI has signed a massive agreement with Amazon Web Services (AWS) worth $38 billion over seven years, in a move that reflects an open race to possess immense computing power that supports the development of highly advanced artificial intelligence models in the coming years.


The Race for Computing Power Before the Race for Models

The developer of ChatGPT aims to be the first entity in the sector to possess a general artificial intelligence model capable of fully simulating human mental activity.
This deal is part of a broader investment trend that includes purchasing storage and processing capabilities from cloud suppliers and chip manufacturers to ensure continued expansion of infrastructure.

CEO Sam Altman confirmed that building the next phase of artificial intelligence requires “reliable and immense” computing power.


Investor Doubts

Despite the enormity of the agreements, some investors express concern given that OpenAI's expected revenues for the current year are around $13 billion, while Altman expects future revenues to exceed all current estimates, affirming that profits will not begin before 2029.



Amazon and NVIDIA: The Biggest Direct Beneficiaries

The cloud infrastructure provided by AWS will heavily rely on NVIDIA GPU processors to run OpenAI's models and handle requests from over 800 million users weekly.

Amazon's shares rose by more than 4.7% following the announcement, adding tens of billions in market value, while NVIDIA also benefited from the investment momentum in advanced computing.


Open Partnership Despite Microsoft's Influence

Although Microsoft holds a significant stake in OpenAI and is its main cloud partner, the startup continues to expand its network of suppliers. Microsoft's additional requests from other providers show that the global demand for computing can no longer be covered by a single entity, no matter its size.