OpenAI reached a deal with Amazon to buy $38B in cloud computing services over the next seven years, with plans to immediately start using AWS compute and all capacity targeted to be deployed before the end of 2026.
The deal follows OpenAI's restructuring last week, which opened the company up to be able to buy computing services from other firms besides Microsoft without their permission.
Okay, so how many multi-billion dollar future-dated checks has OpenAI written at this point?
- OpenAI promised a total of $22.4B to CoreWeave to secure computational power.
- Then there's its $300B deal with Oracle.
- The $250B deal with Microsoft Azure.
- A six gigawatt deal with AMD worth tens of billions.
- Also a ten gigawatt deal with Broadcam worth even more.
- And let's not forget OpenAI's $100B circular deal with Nvidia.
OpenAI is currently on an unsustainable spending spree. In 2024, the company burned through $5 billion, and during the first nine months of this year, has already lost over $25.5 billion. No tech company has ever burned through so much cash in this little amount of time. And yet ChatGPT still can't commit any instruction to memory for more than a few prompts! Another $300B in computing power should fix that issue though, right?
I'm starting to think that OpenAI's goal is to position themselves as the financial glue that props up the entire AI market, all part of a master plan to make themselves too big to fail so that they get government and institutional bail outs when they do inevitably go bust.