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OpenAI Partners with Amazon
OpenAI has signed a $38 billion multi-year agreement with Amazon Web Services (AWS) for access to high-powered AI chips. This deal marks the first direct contract between OpenAI and Amazon, solidifying AWS’s status as a leading cloud services provider in the rapidly growing AI sector.
AWS Financial Growth
AWS reported a 20% increase in revenue in the third quarter, reaching an annual revenue run rate of $132 billion. The division generated over $11 billion in operating income, accounting for about 64% of Amazon’s total operating income, highlighting AWS as a significant profit driver for the company.
Future Implications
The OpenAI deal enhances AWS’s capabilities with access to Nvidia’s high-performance GPUs, which could expand further to include Amazon’s own Trainium chips. This strategic partnership positions Amazon firmly in the competitive AI landscape.
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