Amazon's Strategic AWS Deal with OpenAI

3 months ago

Paul

"Let's take a look at Amazon, shall we, Paul? So Amazon, ticker AMZN, another winner this morning. Shares are up more than 4% and of course that is because of their deal. Well, Amazon Web Services deal with Chad uh OpenAI, Chat GPT Maker. They're going to be providing hundreds of thousands of NVIDIA GPUs, graphic processing units as part of a 7-year deal worth $38 billion. So, you know, AWS was actually a bit of a lagard in the space. You know, they they've kind of uh stepped back, but now they're joining the ranks of companies that are building or retrofitting data centers to back open AI. And so, we actually got uh Bloomer Intelligence, Mandep Singh, and Robert Bigger kind of weighing in on the deal. $38 billion over seven years. Sounds big, but it's actually smaller than a lot of other um Open AI uh comput deals. It's about six to eight times smaller um than the deals that they have with Microsoft and Oracle. So there's definitely room for that to grow. Context matters."

Amazon (AMZN) is highlighted for its AWS deal with OpenAI, involving a 7-year, $38 billion agreement to supply NVIDIA GPUs. While the deal is smaller compared to competitors', it underscores Amazon's commitment to building out its cloud and AI computing infrastructure.

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