Amazon Announces US$50Bln Investment In AI Partnership With OpenAI

WASHINGTON, Feb 27 (Bernama-dpa) — US multinational technology company Amazon and artificial intelligence research firm OpenAI, developer of the ChatGPT chatbot, announced a strategic partnership on Friday, reported German Press Agency (dpa).

The new collaboration aims to accelerate AI innovation for enterprises, startups, and end consumers around the world with the development of a Stateful Runtime Environment powered by OpenAI's models, the companies said.

Amazon will invest US$50 billion in OpenAI, starting with an initial US$15 billion investment and followed by another US$35 billion in the coming months when certain conditions are met, according to the terms of the deal.

Amazon Web Services (AWS) will serve as the exclusive third-party cloud distribution provider for OpenAI Frontier, the companies said.

Together, both companies will develop customised models available to Amazon developers to power Amazon's customer-facing applications, they said. Amazon teams will be able to tailor OpenAI models for use across AI products and agents that serve customers directly, they said.

In the pre-market hours, Amazon was trading at US$207.48, down 0.25 pr cent on the Nasdaq.

— BERNAMA-DPA