The maker of ChatGPT secured a record-breaking investment Friday as Amazon announced plans to pour $50 billion into OpenAI, beginning with $15 billion upfront and an additional $35 billion over the next several months.
This massive commitment forms part of an unprecedented $110 billion fundraising effort by OpenAI, which now carries a pre-investment valuation of $730 billion. Technology giants SoftBank and Nvidia are also participating in the funding round, each contributing $30 billion to the artificial intelligence company.
Under the partnership agreement, Amazon Web Services will become the sole external cloud computing provider for OpenAI Frontier, the company’s business-focused platform designed for creating, launching and overseeing AI-powered digital assistants.
The collaboration will see OpenAI utilizing 2 gigawatts of computing power through Amazon’s proprietary Trainium processors to meet its substantial computational requirements, according to both companies.
