OpenAI and Amazon Sign $38 Billion Deal to Boost AI Power Using AWS

OpenAI and Amazon Web Services (AWS) signed a $38 billion partnership.
This deal will help OpenAI (maker of ChatGPT) to run and grow their AI technology using AWS cloud.

OpenAI and Amazon Sign $38 Billion Deal to Boost AI Power Using AWS

Why This Deal is Important?

AI needs a huge amount of computer power to train big models like ChatGPT.
AWS will give OpenAI:

Millions of CPUs
Hundreds of thousands of NVIDIA GPUs
Very fast cloud computing services

This will make AI faster and more available worldwide.

Timeline

Work already started
Full setup by end of 2026
Expansion planned till 2027 and beyond

Change in Partnership Strategy

Earlier, Microsoft was the only cloud partner of OpenAI.
This new deal means:

OpenAI now uses multiple cloud companies
Not fully dependent on Microsoft anymore
Amazon becomes a strong competitor in AI infrastructure

Who Benefits?

OpenAI → stronger and faster AI technology
Amazon → bigger position in global AI market
AI users → better performance of tools like ChatGPT

Key Points (Quick Revision)

Topic	Details
Deal partners	OpenAI & Amazon Web Services
Value	$38 billion
Focus	AI infrastructure & scaling ChatGPT
Reason	More computing power for AI workloads
Competition	Challenges Microsoft Azure & Google Cloud
Deployment	2026–2027

Question & Answer

Q1. How much is the OpenAI–AWS deal worth?
(a) $10 billion
(b) $25 billion
(c) $38 billion
(d) $50 billion
Answer: (c) $38 billion
Explanation: The partnership agreement between OpenAI and AWS is valued at $38 billion.

Q2. What will AWS mainly provide to OpenAI under this deal?
(a) Social media services
(b) Cloud computing power
(c) Advertising support
(d) Office space
Answer: (b) Cloud computing power
Explanation: AWS will supply CPUs, GPUs, and cloud infrastructure to support OpenAI’s AI models.

Q3. Which company was previously the exclusive cloud partner for OpenAI?
(a) Alphabet
(b) Apple
(c) Microsoft
(d) Meta
Answer: (c) Microsoft
Explanation: Microsoft had an exclusive cloud agreement with OpenAI earlier.

Q4. Which AI product will benefit most from this partnership?
(a) Netflix
(b) ChatGPT
(c) WhatsApp
(d) Spotify
Answer: (b) ChatGPT
Explanation: The deal focuses on improving OpenAI’s AI systems, including ChatGPT.

Q5. What is the expected full deployment year for this deal?
(a) 2025
(b) 2026
(c) 2028
(d) 2030
Answer: (b) 2026
Explanation: The partnership deployment is planned to be completed by the end of 2026.

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