{"id":40613,"date":"2025-11-04T06:18:51","date_gmt":"2025-11-04T06:18:51","guid":{"rendered":"https:\/\/eduzim.co.zw\/news\/?p=40613"},"modified":"2025-11-04T06:18:51","modified_gmt":"2025-11-04T06:18:51","slug":"273690","status":"publish","type":"post","link":"https:\/\/eduzim.co.zw\/news\/2025\/11\/04\/273690\/","title":{"rendered":"OpenAI bets $38-billion on AWS in cloud power grab"},"content":{"rendered":"<p> <script data-jetpack-boost=\"ignore\" async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-1669381584671856\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<!-- Africa tv video display -->\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-client=\"ca-pub-1669381584671856\"\r\n     data-ad-slot=\"3579572842\"\r\n     data-ad-format=\"auto\"\r\n     data-full-width-responsive=\"true\"><\/ins>\r\n<script data-jetpack-boost=\"ignore\">\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script><br \/>\n<\/p>\n<div>\n<figure id=\"attachment_272513\" aria-describedby=\"caption-attachment-272513\" style=\"width: 1500px\" class=\"wp-caption alignnone\"><img data-recalc-dims=\"1\" fetchpriority=\"high\" decoding=\"async\" class=\"wp-image-272513 size-full\" src=\"https:\/\/i0.wp.com\/eduzim.co.zw\/news\/wp-content\/uploads\/2025\/11\/OpenAI-bets-38-billion-on-AWS-in-cloud-power-grab.jpg?resize=640%2C341&#038;ssl=1\" alt=\"OpenAI bets $38-billion on AWS in cloud power grab Sam Altman. Shelby Tauber\/Reuters\" width=\"640\" height=\"341\" srcset=\"https:\/\/eduzim.co.zw\/news\/wp-content\/uploads\/2025\/11\/OpenAI-bets-38-billion-on-AWS-in-cloud-power-grab.jpg 1500w, https:\/\/techcentral.co.za\/wp-content\/uploads\/2025\/10\/re-sam-altman-1500-800-300x160.jpg 300w, https:\/\/techcentral.co.za\/wp-content\/uploads\/2025\/10\/re-sam-altman-1500-800-1024x546.jpg 1024w, https:\/\/techcentral.co.za\/wp-content\/uploads\/2025\/10\/re-sam-altman-1500-800-768x410.jpg 768w, https:\/\/techcentral.co.za\/wp-content\/uploads\/2025\/10\/re-sam-altman-1500-800-150x80.jpg 150w, https:\/\/techcentral.co.za\/wp-content\/uploads\/2025\/10\/re-sam-altman-1500-800-450x240.jpg 450w, https:\/\/techcentral.co.za\/wp-content\/uploads\/2025\/10\/re-sam-altman-1500-800-1200x640.jpg 1200w\" sizes=\"(max-width: 1500px) 100vw, 1500px\"\/><figcaption id=\"caption-attachment-272513\" class=\"wp-caption-text\">OpenAI CEO Sam Altman. Shelby Tauber\/Reuters<\/figcaption><\/figure>\n<p><strong>OpenAI has signed<\/strong> a seven-year, US$38-billion deal to buy cloud services from Amazon.com, in its first big push to power its AI ambitions after a restructuring last week that gave the ChatGPT maker greater operational and financial freedom.<\/p>\n<p>The agreement, announced on Monday, will give OpenAI access to hundreds of thousands of Nvidia GPUs to train and run its artificial intelligence models.<\/p>\n<p>The deal underscores the AI industry\u2019s insatiable appetite for computing power as companies race to build systems that can rival or surpass human intelligence.<\/p>\n<aside class=\"modern-quote pull alignright\">This is a hugely significant deal and is clearly a strong endorsement of AWS compute capabilities<br \/>\n<\/aside>\n<p>OpenAI CEO Sam Altman has said the start-up is committed to spending $1.4-trillion to develop 30GW of computing resources \u2014 enough to power 25 million US homes.<\/p>\n<p>The deal is also a major vote of confidence for the e-commerce giant\u2019s cloud unit, Amazon Web Services, which some investors feared had fallen behind rivals Microsoft and Google in the AI race. Those fears were somewhat eased by the strong growth the business reported in the September quarter. Amazon shares hit an all-time high on Monday.<\/p>\n<p>\u201cThis is a hugely significant deal and is clearly a strong endorsement of AWS compute capabilities to deliver the scale needed to support OpenAI,\u201d said PP Foresight analyst Paolo Pescatore.<\/p>\n<p>\u201cScaling frontier AI requires massive, reliable compute,\u201d said Altman. \u201cOur partnership with AWS strengthens the broad compute ecosystem that will power this next era and bring advanced AI to everyone.\u201d<\/p>\n<h2>1GW\/week<\/h2>\n<p>OpenAI will begin using Amazon Web Services immediately, with all planned capacity set to come online by the end of 2026 and room to expand further in 2027 and beyond.<\/p>\n<p>Amazon plans to roll out hundreds of thousands of chips, including Nvidia\u2019s GB200 and GB300 AI accelerators, in data clusters built to power ChatGPT\u2019s responses and train OpenAI\u2019s next wave of models, the companies said.<\/p>\n<p>Amazon already offers OpenAI open weight models on Amazon Bedrock, which offers multiple AI models for businesses using AWS.<\/p>\n<h3 style=\"text-align: right;\">Read: South Africa\u2019s AI data centre boom risks overloading a fragile grid<\/h3>\n<p>Altman has said that eventually he would like OpenAI to add 1GW of compute every week \u2014 an astronomical sum as each gigawatt currently comes with a capital cost of over $40-billion.<\/p>\n<p>OpenAI\u2019s sweeping restructuring last week moved it further away from its non-profit roots and removed Microsoft\u2019s first right to refusal to supply compute services in the new arrangement.<\/p>\n<figure id=\"attachment_268090\" aria-describedby=\"caption-attachment-268090\" style=\"width: 1500px\" class=\"wp-caption alignnone\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-268090\" src=\"https:\/\/i0.wp.com\/eduzim.co.zw\/news\/wp-content\/uploads\/2025\/11\/1762237130_233_OpenAI-bets-38-billion-on-AWS-in-cloud-power-grab.jpg?resize=640%2C341&#038;ssl=1\" alt=\"ChatGPT\" width=\"640\" height=\"341\" srcset=\"https:\/\/eduzim.co.zw\/news\/wp-content\/uploads\/2025\/11\/1762237130_233_OpenAI-bets-38-billion-on-AWS-in-cloud-power-grab.jpg 1500w, https:\/\/techcentral.co.za\/wp-content\/uploads\/2025\/08\/chatgpt-1500-800-300x160.jpg 300w, https:\/\/techcentral.co.za\/wp-content\/uploads\/2025\/08\/chatgpt-1500-800-1024x546.jpg 1024w, https:\/\/techcentral.co.za\/wp-content\/uploads\/2025\/08\/chatgpt-1500-800-768x410.jpg 768w, https:\/\/techcentral.co.za\/wp-content\/uploads\/2025\/08\/chatgpt-1500-800-150x80.jpg 150w, https:\/\/techcentral.co.za\/wp-content\/uploads\/2025\/08\/chatgpt-1500-800-450x240.jpg 450w, https:\/\/techcentral.co.za\/wp-content\/uploads\/2025\/08\/chatgpt-1500-800-1200x640.jpg 1200w\" sizes=\"auto, (max-width: 1500px) 100vw, 1500px\"\/><figcaption id=\"caption-attachment-268090\" class=\"wp-caption-text\">Image: Jernej Furman<\/figcaption><\/figure>\n<p>Reuters has reported that OpenAI 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 turning into a bubble.<\/p>\n<p>While OpenAI\u2019s relationship with Microsoft, which the two forged in 2019, has helped push Microsoft to the top spot among its Big Tech peers in the AI race, both companies have been trying to reduce reliance on each other.<\/p>\n<p>OpenAI has already tapped Google to supply it with cloud services. It also reportedly struck a deal with Oracle to buy $300-billion in computing power for about five years.<\/p>\n<h3 style=\"text-align: right;\">TCS | Why Altron is building an AI factory in Johannesburg<\/h3>\n<p>The hefty commitments from OpenAI has raised some eyebrows on Wall Street, with analysts and investors questioning how the loss-making company will fund all those deals. Last week, OpenAI also agreed to purchase $250-billion of Microsoft\u2019s Azure cloud services, as part of the restructuring deal.\u00a0 \u2014 <em>Deborah Sophia and Aditya Soni, with Harshita Mary Varghese, (c) 2025 Reuters<\/em><\/p>\n<p><em>Get breaking news from TechCentral on WhatsApp.<\/em>\u00a0<em>Sign up here<\/em>.<\/p>\n<\/div>\n<p><script data-jetpack-boost=\"ignore\" async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-1669381584671856\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<!-- Africa tv video display -->\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-client=\"ca-pub-1669381584671856\"\r\n     data-ad-slot=\"3579572842\"\r\n     data-ad-format=\"auto\"\r\n     data-full-width-responsive=\"true\"><\/ins>\r\n<script data-jetpack-boost=\"ignore\">\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script><br \/>\n#OpenAI #bets #38billion #AWS #cloud #power #grab<\/p>\n","protected":false},"excerpt":{"rendered":"<p>OpenAI CEO Sam Altman. Shelby Tauber\/Reuters OpenAI has signed a seven-year, US$38-billion deal to buy cloud services from Amazon.com, in&hellip;<\/p>\n","protected":false},"author":1,"featured_media":40614,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[32],"tags":[],"class_list":["post-40613","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-mzansi"],"_links":{"self":[{"href":"https:\/\/eduzim.co.zw\/news\/wp-json\/wp\/v2\/posts\/40613","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/eduzim.co.zw\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/eduzim.co.zw\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/eduzim.co.zw\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/eduzim.co.zw\/news\/wp-json\/wp\/v2\/comments?post=40613"}],"version-history":[{"count":1,"href":"https:\/\/eduzim.co.zw\/news\/wp-json\/wp\/v2\/posts\/40613\/revisions"}],"predecessor-version":[{"id":40615,"href":"https:\/\/eduzim.co.zw\/news\/wp-json\/wp\/v2\/posts\/40613\/revisions\/40615"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/eduzim.co.zw\/news\/wp-json\/wp\/v2\/media\/40614"}],"wp:attachment":[{"href":"https:\/\/eduzim.co.zw\/news\/wp-json\/wp\/v2\/media?parent=40613"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/eduzim.co.zw\/news\/wp-json\/wp\/v2\/categories?post=40613"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/eduzim.co.zw\/news\/wp-json\/wp\/v2\/tags?post=40613"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}