(MENAFN) OpenAI revealed on Monday that it had entered into a $38 billion agreement to secure computing capacity from Amazon’s cloud division, Amazon Web Services (AWS).

This marks the organization’s inaugural collaboration with the major cloud infrastructure provider.

According to a statement from OpenAI, the company will immediately begin employing AWS infrastructure to execute its operations, making use of hundreds of thousands of Nvidia graphics processing units (GPUs) located in the United States.

The organization also intends to expand this capacity over the coming years.

The announcement stated that the partnership will "have continued growth" throughout the next seven years.

"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," the statement read.

OpenAI Chief Executive Officer Sam Altman emphasized that advancing the frontiers of artificial intelligence demands immense and dependable computational resources.

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

Following the news, Amazon’s stock price increased by 4.6%.

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