As part of a more than $1 trillion computing power buying binge, OpenAI has inked a $38 billion agreement to leverage Amazon infrastructure to run its AI products.
OpenAI will have immediate access to AWS datacenters and the Nvidia chips they contain thanks to the agreement with Amazon Web Services.
Amid worries about the sustainability of the surge in datacenter usage and construction, OpenAI CEO Sam Altman announced last week that his organization has committed to spending $1.4 trillion on AI infrastructure.
These are the central neurological systems of ChatGPT and other AI technologies.
Altman stated on Monday that “massive, dependable compute is required for scaling frontier AI.”
“Everyone will have access to advanced AI thanks to our partnership with AWS, which strengthens the broad compute ecosystem that will power this next era.”
According to OpenAI, the agreement would allow it to train and run its AI models on hundreds of thousands of Nvidia graphics processors.
According to the firms, Amazon intends to utilize the chips in data clusters that will power ChatGPT’s responses and train OpenAI’s upcoming models.
AWS CEO Matt Garman stated that OpenAI was still pushing the envelope of what was feasible and that Amazon’s infrastructure will support its goals.
About 25 million US homes might be powered by the 30 gigawatts of computer capacity that OpenAI is dedicated to building.
As part of a reorganization that valued the firm at $500 billion, OpenAI said last week that it had turned its primary operation into a for-profit company.
Microsoft, a longtime supporter, will own about 27% of OpenAI’s new for-profit company.
Some market observers are worried about how AI businesses will pay for their race for processing power. According to the Financial Times, OpenAI’s $1.4 trillion infrastructure pledge dwarfs its $13 billion yearly earnings. One of OpenAI’s other data center agreements is a $300 billion contract with the US firm Oracle.
During a podcast interview with Microsoft CEO Satya Nadella, Altman responded to the concerns about spending by saying “enough” when host Brad Gerstner, a US investor, asked about the discrepancy between OpenAI’s revenue and its infrastructure promises.
Without giving a specific amount, Altman stated that OpenAI earned “well more” than the $13 billion that was reported. “I just—enough,” he continued. I believe that many individuals would be interested in purchasing OpenAI stock.
Global data center spending is expected to reach around $3 trillion between now and 2028, according to analysts at the US investment firm Morgan Stanley.
They said that the major US IT firms will pay for half of that expenditure, with the remaining funds coming from sources like the private credit market, an expanding segment of the shadow banking industry that is causing concerns at the Bank of England and other places.
