Amazon completed its $50 billion OpenAI investment, with payments split across Q1, Q2, and after June 30. The deal positions AWS as the exclusive cloud provider for OpenAI's Frontier program, cementing a partnership that could total $100 billion over eight years.
Amazon completed its $50 billion investment in OpenAI, according to a Friday filing with the Securities and Exchange Commission.
The deal, announced in February, called for Amazon to invest $15 billion in the first quarter and another $13.7 billion in the second quarter. The remaining $21.3 billion was paid after June 30.
OpenAI disclosed the investment on Feb. 27, saying Amazon Web Services would become the exclusive third-party cloud provider for its Frontier program. The companies also agreed to expand prior infrastructure agreements that could total $100 billion over eight years.
Amazon's own Feb. 27 announcement said the $50 billion would start with $15 billion, with the remaining $35 billion coming "when certain conditions are met." The Information reported in February that those conditions could include OpenAI going public or achieving artificial general intelligence. The Information noted Friday that OpenAI has not gone public, and Amazon did not explain why it made the final payment.
The filing shows Amazon completed the investment, giving AWS exclusive access to the Frontier program. Microsoft's long-standing investment in OpenAI had created uncertainty about cloud exclusivity. The new deal resolves that by awarding AWS the exclusive Frontier contract, while OpenAI continues to use other providers for non-Frontier workloads.
OpenAI has been expanding its user base fast. The company said Wednesday that ChatGPT is approaching 1 billion weekly active users. That milestone, while seven months later than initially projected, made ChatGPT one of the fastest-growing apps ever, reaching that scale in under four years.
On Thursday, OpenAI cut prices on two of its models and accelerated the performance of a third without changing its price. The company said it made these changes to improve performance per dollar across enterprise workloads.
"We are building a resilient infrastructure portfolio and matching each workload to the systems best suited to run it," OpenAI said in a blog post. "That approach supports both ends of the price-performance curve."
The investment provides Amazon with a significant stake in one of the most prominent AI companies, while giving OpenAI the capital to continue scaling its infrastructure and model development. The total value of the cloud agreements tied to the deal could reach $100 billion over eight years, making it one of the largest enterprise cloud contracts in history.
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