Massive development in tech world as OpenAI, Amazon strike $38-billion deal, plan to….

California: In a major development from the technology world, Amazon.com Inc. has signed a $38-billion deal with Sam Altman’s OpenAI where it will supply OpenAI with cloud computing services under a multi-year $38-billion deal. As per a report by news agency Reuters, OpenAI has signed a major deal with Amazon Web Services to secure large-scale computing power, highlighting the AI sector’s growing demand for resources to develop human-level intelligence. Here are all the details you need to know about the Amazon-Open AI $38-billion deal.

Amazon-Open AI $38-billion deal

As a part of the agreement, which will be fully operational by 2026 with potential expansion from 2027 onward, OpenAI will begin using Amazon Web Services immediately. The deal between the two global tech giants has pushed Amazon’s shares up 5% in premarket trading. The deal is expected to give ChatGPT maker access to hundreds of thousands of Nvidia graphics processors to train and run its artificial intelligence models, the Reuters report said.

What makes the Amazon-Open AI $38-billion deal huge?

Readers should note that the Amazon-Open AI $38-billion deal marks one of OpenAI’s first major moves since restructuring to distance itself from its nonprofit origins, as it reportedly prepares for an IPO that could value it at up to $1 trillion. However, soaring valuations and spending across the AI industry-exceeding $1 trillion that has have sparked concerns of a potential bubble.