After a continuous spree of partnerships with tech companies, OpenAI has added one more collaboration with a strategic multi-year partnership with Amazon Web Services, as per an official press release. The compute deal is valued at $38 billion.
The update comes after a Reuters report, which said the AI company was considering an IPO in 2026 or 2027, valued at $1 trillion.
Under the agreement, OpenAI will be able to start using AWS’s infrastructure for its workloads, in line with the company’s massive requirement for processing power and large amounts of data to conduct its services.
“Scaling frontier AI requires massive, reliable compute,” said OpenAI’s CEO, Sam Altman.
“Our partnership with AWS strengthens the broad compute ecosystem that will power this next era and bring advanced AI to everyone.”
The deal represents a move away from its exclusive partnership with Microsoft, which it had first secured in 2019, an agreement that saw the Microsoft become OpenAI’s exclusive cloud provider through Azure and an initial investment of $1 billion from Microsoft.
According to CNBC, Microsoft said in January that it would no longer be an exclusive partner for OpenAI.
Microsoft is still a strong backer of OpenAI, recently announcing a 27% stake in the PBC arm of the company.
“As OpenAI continues to push the boundaries of what’s possible, AWS’s best-in-class infrastructure will serve as a backbone for their AI ambitions,” said Matt Garman, CEO of AWS.
“The breadth and immediate availability of optimized compute demonstrates why AWS is uniquely positioned to support OpenAI’s vast AI workloads.”