Overview
- OpenAI will tap AWS for hundreds of thousands of Nvidia GPUs with the option to scale to tens of millions of CPUs over a seven‑year term, according to Amazon Web Services.
- This agreement ends Microsoft’s exclusive cloud role as OpenAI maintains a new non‑exclusive Azure contract and Microsoft retains roughly a 27% stake.
- California and Delaware regulators approved a restructuring that allows OpenAI to convert to a public benefit company and modify its ownership model.
- Amazon shares jumped about 5% in premarket trading on the announcement and later closed up roughly 4%, boosting AWS’s standing in the AI race.
- Coverage notes significant losses and risk concerns, including a reported $5 billion loss in 2024 and analyst estimates of a larger deficit this year.