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OpenAI and Amazon announce strategic partnership

OpenAI and Amazon are forming a multi-year partnership to bring stateful AI runtimes and custom models to AWS customers, supported by a $50 billion Amazon investment.

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by Defused News Writer
OpenAI and Amazon announce strategic partnership
Photo by Nik / Unsplash

OpenAI and Amazon are launching a multi-year strategic partnership that includes a $50 billion Amazon investment and makes AWS the exclusive third-party cloud distributor for OpenAI Frontier, the big tech companies have announced.

The firms will co-develop a Stateful Runtime Environment powered by OpenAI models and deliver it through Amazon Bedrock so enterprises can build generative artificial intelligence applications and agents that retain context, memory and access to compute across ongoing workflows.

The agreement expands an existing $38 billion multi-year deal by $100 billion over 8 years and commits OpenAI to consume approximately 2 gigawatts of Trainium capacity through AWS infrastructure to support the Stateful Runtime Environment, Frontier and other advanced workloads.

OpenAI and Amazon will also collaborate on customized models for Amazon’s customer-facing applications, enabling Amazon teams to tailor OpenAI models alongside Amazon’s Nova family.

The announcement noted that Amazon will invest $50 billion in OpenAI, beginning with an initial $15 billion investment and followed by another $35 billion when certain conditions are met.

The recap

  • OpenAI and Amazon announce a multi-year strategic partnership.
  • Amazon will invest $50 billion, with $15 billion initial funding.
  • Stateful Runtime Environment expected to launch in the next months.
Defused News Writer profile image
by Defused News Writer