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Axios
Axios
Technology

UNCOVERED: Amazon strikes 50b openai deal | History Defined

Amazon OpenAI Microsoft AWS

A deal with OpenAI could put Amazon first to market with a new type of AI service for developers — but the two companies will have to tread carefully to avoid running afoul of OpenAI's deal with Microsoft. Why it matters: If successful, Amazon Web Services could land in a more enviable position at the leading edge of generative AI rather than being forced to compete mainly by delivering models more cheaply than rival clouds.

Driving the news: Amazon and OpenAI on Friday announced a multipronged deal that calls for Amazon to invest up to $50 billion in OpenAI, with Amazon getting access to a variety of OpenAI services.

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