Amazon has fully completed its committed $50 billion investment in OpenAI and now holds around five percent of the AI company. With it, Amazon deepens one of the market’s most significant cloud and AI partnerships.
Reaching the goal in stages
According to reports, Amazon invested $15 billion in the first quarter, another $13.7 billion in the second and the remaining $21.3 billion after 30 June. The funding had been announced in February. The early completion became possible after OpenAI renegotiated its cloud contract with Microsoft, clearing the way for Amazon Web Services (AWS).
A cloud deal in the background
As part of the agreement, AWS becomes the exclusive third-party cloud provider for OpenAI’s “Frontier” program. The infrastructure agreements between the two companies could reach up to $100 billion over eight years.
What it means
Amazon – so far known mainly as a backer of OpenAI rival Anthropic – is thus also betting on OpenAI, a sign of how broadly the big cloud companies are spreading their bets in the AI race.
