OpenAI snags Amazon AWS deal for classified government work with Anthropic pushed aside
Following Anthropic being deemed a “supply chain risk” to national security, the field is clear for OpenAI. The Information is reporting that OpenAI just landed a deal with Amazon AWS to sell its AI services to government employees for both classified and unclassified work.
Previously, OpenAI was contractually obliged to use Microsoft Azure cloud hosting for the government contracts it handled as part of its $13 billion deal with the software giant, but since it restructured as a for-profit public benefit corporation and renegotiated the terms of the deal, OpenAI is free to use AWS, which is more commonly used in government work.
According to the report, contracts that sell AI services through another company like Amazon can be much larger then direct contracts with the government, which is crucial for OpenAI as it chases the success that Anthropic has had with enterprise customers.
Previously, OpenAI was contractually obliged to use Microsoft Azure cloud hosting for the government contracts it handled as part of its $13 billion deal with the software giant, but since it restructured as a for-profit public benefit corporation and renegotiated the terms of the deal, OpenAI is free to use AWS, which is more commonly used in government work.
According to the report, contracts that sell AI services through another company like Amazon can be much larger then direct contracts with the government, which is crucial for OpenAI as it chases the success that Anthropic has had with enterprise customers.
