- Amazon (NASDAQ:AMZN) and OpenAI signed a multi-year partnership to advance how businesses and consumers deploy generative AI technology
- The deal will see Amazon invest US$50 billion in OpenAI as the partners jointly develop their Stateful Runtime Environment Platform, allowing AI developers to control compute, memory and identity with unmatched efficiency
- Amazon stock is down by 0.88 per cent trading at US$206.08 as of 9:41 am ET
Amazon (NASDAQ:AMZN) and OpenAI signed a multi-year partnership to advance how businesses and consumers deploy generative AI technology.
The deal will see Amazon invest US$50 billion in OpenAI as the partners jointly develop their Stateful Runtime Environment Platform, which, according to Friday’s news release, represents “the next generation of how frontier models will be used, seamlessly enabling models to access elements like compute, memory, and identity,” effectively democratizing the building of generative AI applications and agents at production scale.
The platform, expected to launch over the coming months, will be available through Amazon Bedrock, enabling AI programs to run cohesively alongside other AWS applications.
The deal names AWS as the exclusive third-party cloud distribution provider for OpenAI Frontier, its most advanced enterprise platform to build, deploy and manage teams of AI agents, and lays the groundwork for the companies to develop customized models tailored to Amazon developers.
The news coincides with the US$100 billion expansion of an existing agreement to run OpenAI’s core AI workloads on AWS infrastructure, including a new 2 gigawatt commitment using AWS’s Trainium chips.
Management commentary
“OpenAI and Amazon share a belief that AI should show up in ways that are practical and genuinely useful for people,” Sam Altman, co-founder and chief executive officer (CEO) of OpenAI, said in a statement. ”Combining OpenAI’s models with Amazon’s infrastructure and global reach helps us put powerful AI into the hands of businesses and users at real scale.”
“We have lots of developers and companies eager to run services powered by OpenAI models on AWS, and our unique collaboration with OpenAI to provide stateful runtime environments will change what’s possible for customers building AI apps and agents,” added Andy Jassy, president and CEO of Amazon. “We continue to be impressed with what OpenAI is building, and we’re excited not only about their choosing to go big on our custom AI silicon (Trainium), but also our opportunity to invest in the company and partnership over the long-term.”
Join the discussion: Find out what investors are saying about ongoing AI momentum on the Amazon Inc. Bullboard and make sure to explore the rest of Stockhouse’s stock forums and message boards.
Stockhouse does not provide investment advice or recommendations. All investment decisions should be made based on your own research and consultation with a registered investment professional. The issuer is solely responsible for the accuracy of the information contained herein.
For full disclaimer information, please click here.
