ChatGPT-maker OpenAI has signed a new agreement with Amazon (AMZN) that will allow U.S. government and defense agencies to access its AI models through Amazon Web Services (AWS), The Information reported. The move builds on a new Pentagon contract OpenAI secured late last month, following the Defense Department’s decision to drop Anthropic as its AI supplier.
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Trade AMZN with leverageThe deal allows OpenAI to provide its technology for both classified and unclassified work, a shift from its earlier focus on unclassified government use.
Here’s Why This Deal Matters
The Pentagon recently cut ties with Anthropic after the AI startup refused to allow unrestricted military use of its AI models, particularly for domestic surveillance and autonomous weapons. The agency labeled Anthropic a “supply chain risk,” leaving an immediate gap in the Pentagon’s AI plans.
OpenAI quickly filled the gap, securing a contract to support millions of Defense Department employees with ChatGPT and custom AI tools. Importantly, OpenAI’s new AWS partnership helps extends access to a wider range of federal agencies.
AWS already runs cloud infrastructure for several U.S. agencies, making it a natural distribution channel. Under the deal, AWS will sell OpenAI’s models directly to its government customers, giving OpenAI instant access to agencies that rely on Amazon’s cloud.
Which Is the Best AI Stock to Buy?
Anthropic and OpenAI are still private startups, but investors who want exposure to the AI boom can look to several publicly traded companies in the sector. TipRanks’ Best AI Stocks tool shows chipmaker Nvidia (NVDA), which is rated a Strong Buy, stands out for its potential gains.
With an average price target of $273.61, Nvidia’s shares currently offer the biggest upside of 49.44%.
