Nitish Kumar will take oath as Bihar Chief Minister on November 20, with BJP and JD(U) leaders likely joining the cabinet as key posts, including Deputy CM and Speaker, are finalised. After securing the victory, Nitish Kumar, with his cabinet ministers
OpenAI, Amazon Sign $38 Billion Cloud Deal
OpenAI has agreed to pay Amazon.com $38 billion for computing power in a multiyear deal that marks the first partnership between the startup and the cloud giant.
The deal, announced Monday, will help satisfy OpenAI's fast-growing computing needs. Amazon expects that all of the computing capacity negotiated as part of the agreement will be available to OpenAI by the end of next year, giving the ChatGPT maker quick access to powerful Nvidia chips housed inside its data centers.
Amazon is under pressure from investors to accelerate the growth of its Amazon Web Services cloud business. AWS is the industry's largest cloud provider, but rivals such as Microsoft and Google have reported faster cloud-revenue growth in recent years after capturing new demand from AI customers.
Amazon shares rose 5% premarket.
As part of the new seven-year pact, OpenAI will be able to train new AI models using Amazon's data centers, and use them to process ChatGPT queries. It could also use Amazon's central-processing units, or CPUs, to power what is called agentic AI, where the technology completes tasks autonomously.
The deal is tiny compared with those OpenAI has signed with other cloud giants, which include a $300 billion deal with Oracle and a $250 billion commitment to Microsoft. But it represents a key first step in Amazon's effort to ensure that its cloud business can benefit from a company that is pledging to spend trillions of dollars on computing power in the coming years.
Amazon outlined aggressive plans to grow its data-center capacity when reporting earnings last week. The company said revenue from its cloud business grew 20% in the latest quarter, the fastest rate of growth since 2022.
Among Amazon's larger projects is an $11 billion data-center campus in Indiana that it recently opened for OpenAI rival Anthropic. Amazon is Anthropic's main cloud provider and it expects the startup to become a core AI customer for years to come, having invested $8 billion into the company. Anthropic is also a large customer of Amazon's AI chip, called Trainium.
But Anthropic agreed to use up to one million of Google's TPU AI chips as part of a multibillion-dollar deal announced last month. That has raised questions from industry analysts about whether the startup was shifting some new workloads away from Amazon.
Amazon wasn't able to sell its cloud services to OpenAI for years because the startup had an exclusive cloud-computing partnership with Microsoft. OpenAI ended that arrangement last month as part of a renegotiation of its contract with Microsoft and has been on a dealmaking spree to meet its vast computing needs.
OpenAI now has almost $600 billion in new cloud commitments between Oracle, Microsoft and Amazon. It also signed a cloud deal with Google earlier this year, the size of which wasn't disclosed.
OpenAI is set to generate $13 billion in revenue this year, meaning that it will have to continue growing sales at an exponential rate to pay for its computing needs. Chief Executive Sam Altman has said that OpenAI is facing severe computing shortages and that revenue will grow even faster as more capacity becomes available.
News Corp, owner of The Wall Street Journal, has a content-licensing partnership with OpenAI.
Write to Berber Jin at berber.jin@wsj.com
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Source: Hindustan Times
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Nitish Kumar will take oath as Bihar Chief Minister on November 20, with BJP and JD(U) leaders likely joining the cabinet as key posts, including Deputy CM and Speaker, are finalised. After securing the victory, Nitish Kumar, with his cabinet ministers
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