OpenAI and Amazon have entered a $38 billion agreement enabling OpenAI to run its AI systems, including ChatGPT, on Amazon Web Services’ (AWS) data centers across the U.S.

This partnership will give OpenAI access to “hundreds of thousands” of Nvidia’s specialized AI chips through Amazon Web Services.

The big picture: The deal was announced on Monday and immediately boosted Amazon’s stock price by more than 4%. • The agreement comes shortly after California and Delaware regulators approved OpenAI’s transition from a nonprofit to a new business structure aimed at easier capital raising and profitability.

What they’re saying: Amazon highlighted the surging demand for AI computing power, stating, “The rapid advancement of AI technology has created unprecedented demand for computing power.

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