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Welcome to The Prompt by Kuro House, your daily AI update. Today we’ve got some major moves in AI infrastructure, legal battles over training data, and strategic investments shaping the global AI landscape. Let’s dive right in.
First up, OpenAI just signed a massive $38 billion deal with Amazon Web Services. This seven-year agreement gives OpenAI access to hundreds of thousands of Nvidia GPUs hosted in AWS data centers to train its AI models. According to The Verge, OpenAI will start using AWS compute immediately, aiming to deploy full capacity by the end of 2026, with room to expand beyond that. Interestingly, this deal comes as Microsoft loosens its exclusive cloud partnership with OpenAI, allowing the AI startup to diversify its infrastructure providers. Amazon is even building custom Nvidia chip setups for OpenAI’s training and inference workloads.
On the legal front, a coalition of Japanese IP holders including Studio Ghibli and Bandai Namco are demanding OpenAI stop using their content to train AI models. The Content Overseas Distribution Association, or CODA, argues that replicating copyrighted works during AI training may constitute infringement. They point to OpenAI’s Sora 2 model generating content with Japanese IP without prior permission, which has even drawn formal government attention in Japan, as reported by The Verge. CODA insists that Japan’s copyright law requires prior consent and rejects the idea that an opt-out policy can protect against infringement claims. They’re urging OpenAI to respond sincerely and halt the use of their members’ content for machine learning without permission.
Meanwhile, Lambda, a cloud computing company backed by Nvidia, has inked a multibillion-dollar AI infrastructure deal with Microsoft. The exact value wasn’t disclosed, but Lambda will deploy tens of thousands of Nvidia GPUs, including the latest GB300 NVL72 systems, to support Microsoft’s AI ambitions. TechCrunch reports this deepens an eight-year partnership between the two companies, marking a significant step forward in building massive AI supercomputers. This deal comes shortly after Microsoft announced a $9.7 billion AI cloud capacity agreement with Australian data center operator IREN. Clearly, Microsoft is aggressively expanding its AI infrastructure worldwide.
Speaking of Microsoft, the company is investing $15.2 billion in the United Arab Emirates over the next four years, turning the Gulf state into a key hub for US AI diplomacy. At the Abu Dhabi Global AI Summit, Microsoft revealed it will ship the most advanced Nvidia GPUs to the UAE, enabled by a special US export license. As TechCrunch explains, this deal positions the UAE as a regional anchor for American AI influence and a proving ground for export-control diplomacy. Microsoft has already spent over $7.3 billion in the UAE since 2023 on data centers and investments, including a $1.5 billion equity stake in the sovereign AI company G42. The company plans to train a million residents by 2027 and establish Abu Dhabi as a hub for AI research and model development.
Finally, Wired highlights how OpenAI’s $38 billion deal with Amazon signals a broader trend of AI companies diversifying their cloud providers. OpenAI is now collaborating with multiple industry giants including Google, Oracle, Nvidia, and AMD to secure compute resources. Experts warn this rapid expansion could indicate an AI infrastructure bubble, with projected US spending on AI compute expected to exceed $500 billion between 2026 and 2027. But OpenAI’s CEO Sam Altman emphasizes that scaling frontier AI requires massive and reliable compute power, justifying these major investments. It’s a fascinating moment as AI infrastructure becomes a critical battleground for innovation and competition.
So, from huge cloud deals to copyright fights and geopolitical investments, the AI world is moving fast and reshaping itself on multiple fronts. We’ll keep tracking these stories and what they mean for the future of AI. Thanks for listening to The Prompt by Kuro House, and see you tomorrow for another update.
