(MENAFN) OpenAI has secured a landmark $38 billion agreement with Amazon Web Services (AWS), the e-commerce titan's cloud division, in what represents the AI pioneer's inaugural partnership with the infrastructure powerhouse.

The artificial intelligence company will immediately begin leveraging AWS computing resources to power operations, deploying hundreds of thousands of Nvidia graphics processing units across American data centers, OpenAI confirmed Monday. Capacity expansion is slated to accelerate over the coming years.

The seven-year collaboration promises "continued growth" throughout its duration, according to OpenAI's official statement.

"AWS has unusual experience running large-scale AI infrastructure securely, reliably, and at scale – with clusters topping 500K chips. AWS's leadership in cloud infrastructure combined with OpenAI's pioneering advancements in generative AI will help millions of users continue to get value from ChatGPT," it said.

OpenAI CEO Sam Altman said pushing the boundaries of AI requires large and reliable computing power.

"Our partnership with AWS strengthens the broad compute ecosystem that will power this next era and bring advanced AI to everyone," Altman said.

Wall Street responded enthusiastically to the announcement, with Amazon's stock surging 4.6% following the disclosure, reflecting investor confidence in the cloud computing giant's AI infrastructure strategy.

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