OpenAI's forecast? Cloudy ☁️

OpenAI Signs $38B Cloud Deal with Amazon

OpenAI just signed one of the largest cloud deals in tech history. Through the $38 billion agreement with Amazon, OpenAI will run and scale its AI workloads on Amazon Web Services, securing long-term GPU capacity as model sizes continue to grow.

Let’s break down what’s happening ➡️

• In the past, OpenAI had relied heavily on Microsoft Azure for training and deployment. Now, by spreading workloads across AWS, Google, and Oracle, it reduces its risk of being tied to a single provider.

• Bringing OpenAI workloads onto AWS reinforces Amazon as infrastructure for frontier-scale models, not just general-purpose cloud compute.

• Training and running models at this level requires physical scale: power, chips, heat management, and long-term capacity planning. 

But scrutiny of OpenAI continues: Amid multibillion-dollar deals, OpenAI CEO Sam Altman recently pushed back on questions about OpenAI’s financial runway, saying the company is generating “well more” than $13 billion in annual revenue—but declining to elaborate.

Google Pulls Gemma After Defamation Incident

Google withdrew one of its AI models from public access after the bot generated a fabricated sexual misconduct allegation about a US senator. The model, Gemma, produced a detailed narrative and even cited fake news links, making the accusation appear credible.

The deployment context was mismatched. Gemma was intended for developers, not for general factual Q&A. Once the model surfaced in a chatbot-like interface, users treated it as a source of truth, and the consequences followed. 

A political escalation of hallucination risk. Hallucinations are a known failure mode of language models. But when a model generates a criminal allegation involving a public official, the issue shifts from technical accuracy to reputation harm and legal liability.

Japan Pushes Back on Sora Training Data

Japan’s top creative studios are pushing back on how their art is being used to train AI models. A consortium representing Studio Ghibli, Bandai Namco, and Square Enix has asked OpenAI to stop using their visual styles and content as training data for Sora. 

Creative differences. In the US, training is often treated as acceptable by default unless contested. In Japan, creators expect permission to be granted before training occurs. These reflect fundamentally different views of what artistic work represents. Currently there is no internationally shared standard, and models trained under one regime may face distribution limits in another.

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