OpenAI, Amazon strike $38 billion agreement for ChatGPT maker to use AWS [View all]

Source: Reuters

Amazon.com (AMZN.O) will supply OpenAI with cloud computing services under a multi-year $38 billion deal, giving the ChatGPT maker access to hundreds of thousands of Nvidia graphics processors to train and run its artificial intelligence models.

The agreement announced on Monday underscores the AI industry's insatiable appetite for computing power, driven by the pursuit of technology capable of matching or surpassing human intelligence. It sent Amazon shares up 5% in premarket trading.

-snip-

The deal is among the first major moves by OpenAI since it completed a restructuring last week that frees the ChatGPT maker to move away from its nonprofit roots. Reuters has reported it was laying the groundwork for an initial public offering that could value the company at up to $1 trillion.

But surging valuations of AI companies and their massive spending commitments, which total more than $1 trillion for OpenAI, have raised fears that the AI boom is inflating into a bubble.

-snip-

Read more: https://www.reuters.com/business/retail-consumer/openai-amazon-strike-38-billion-agreement-chatgpt-maker-use-aws-2025-11-03/

---

It is a bubble. And the AI bros don't care what they're destroying in their fantasies about superintelligent AI letting them rule the world.

Sam Altman is determined to have OpenAI considered "too big to fail" so it will get the trillions he wants even though what the company is best at is losing incredible amounts of money, year after year, to provide generative AI tools that they admit will never be reliable.