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OpenAI signs $38bn cloud computing deal with Amazon

about 23 hours ago
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OpenAI has signed a $38bn (£29bn) deal to use Amazon infrastructure to operate its artificial intelligence products, as part of a more than $1tn spending spree on computing power.The agreement with Amazon Web Services means OpenAI will be able to use AWS datacentres, and the Nvidia chips inside them, immediately.Last week, OpenAI’s chief executive, Sam Altman, said his company had committed to spending $1.4tn on AI infrastructure, amid concerns over the sustainability of the boom in using and building datacentres.These are the central nervous systems of AI tools such as ChatGPT.

“Scaling frontier AI requires massive, reliable compute,” Altman said on Monday.“Our partnership with AWS strengthens the broad compute ecosystem that will power this next era and bring advanced AI to everyone.”OpenAI said the deal would give it access to hundreds of thousands of Nvidia graphics processors to train and run its AI models.Amazon plans to use the chips in data clusters that will power ChatGPT’s responses and train OpenAI’s next wave of models, the companies said.Matt Garman, the chief executive of AWS, said OpenAI continued to push the boundaries of what was possible and that Amazon’s infrastructure would serve as a backbone for its ambitions.

OpenAI is committed to developing 30 gigawatts of computing resources – enough to power roughly 25 million US homes,Last week, OpenAI said it had converted its main business into a for-profit corporation as part of a reorganisation that valued the startup at $500bn,Its longtime backer Microsoft will have a roughly 27% stake in OpenAI’s new for-profit corporation,The race for computing power by AI companies has raised concerns among some market watchers about how it will be paid for,OpenAI’s annual revenue is about $13bn, according the Financial Times, a figure dwarfed by its $1.

4tn infrastructure commitment.Other datacentre deals signed by OpenAI include a $300bn agreement with the US company Oracle.Altman hit back at the spending concerns during a podcast appearance with the Microsoft chief executive, Satya Nadella, saying “enough” to a question from the host, the US investor Brad Gerstner, about the gap between OpenAI’s revenue and its infrastructure commitments.Altman said OpenAI made “well more” revenue than the reported $13bn, without specifying a number.He added: “I just – enough … I think there’s are a lot of people who would love to buy OpenAI shares.

”Analysts at the US investment bank Morgan Stanley estimate that global spending on datacentres will reach nearly $3tn between now and 2028.They said half of that spending would be covered by the big US tech companies and the rest would come from sources such as the private credit market, a growing part of the shadow banking sector that is raising concerns at the Bank of England and elsewhere.The best public interest journalism relies on first-hand accounts from people in the know.If you have something to share on this subject, you can contact us confidentially using the following methods.Secure Messaging in the Guardian appThe Guardian app has a tool to send tips about stories.

Messages are end to end encrypted and concealed within the routine activity that every Guardian mobile app performs,This prevents an observer from knowing that you are communicating with us at all, let alone what is being said,If you don't already have the Guardian app, download it (iOS/Android) and go to the menu,Select ‘Secure Messaging’,SecureDrop, instant messengers, email, telephone and postIf you can safely use the Tor network without being observed or monitored, you can send messages and documents to the Guardian via our SecureDrop platform.

Finally, our guide at theguardian.com/tips lists several ways to contact us securely, and discusses the pros and cons of each.
politicsSee all
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HMRC likely to have breached privacy laws in stopping child benefit – experts

Ministers may have breached privacy laws when they suspended the child benefit of thousands of families on the basis of flawed Home Office information, legal experts have said.At the same time, the UK’s data watchdog, the Information Commissioner’s Office, has contacted the national tax authority, HMRC, over the issues raised.Pressure on the government to reveal the reason incomplete Home Office travel data was used by HMRC as part of a benefit crackdown has mounted as the Liberal Democrat spokesperson for work and pensions, Steve Darling, said what had happened was “unacceptable”.“After the carers allowance repayments scandal, this news raises fresh concerns that things are seriously wrong within our welfare system, with people paying the price through no fault of their own.“Ministers must come clean on how exactly this error was allowed to happen in the first place, support affected families, and ensure that action will be taken to stop such mistakes from ever happening again

3 days ago
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Zarah Sultana sets sights on replacing Labour and gaining power

The MP Zarah Sultana has said she hopes her new political party will ultimately replace Labour as she revealed she was committed to winning power.Sultana left the Labour party in July to form the new group, operating under the temporary name Your Party.Asked by Nick Robinson on his BBC podcast Political Thinking if she aimed with her new party to replace Labour, she said: “That’s the vision. We are the party of the left, and we have to build. And we’re starting from very humble beginnings

4 days ago
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Tory patience wears thin as Badenoch’s critics count down to May elections

At an opulent speakeasy-style event at the Raffles hotel on Whitehall this week, the great and the good of what is left of the Conservative party marked the Spectator’s parliamentarian of the year awards.With the magazine’s editorial line still just about backing the Tories, despite the party facing an existential crisis from Reform UK, it was unsurprising that much of the gossip at the champagne-fuelled event was about whether Kemi Badenoch’s job was at risk.James Cleverly, who unsuccessfully ran against her for the leadership, couldn’t resist a dig from the stage at the naked ambition of his shadow cabinet colleague, Robert Jenrick – who is Badenoch’s biggest threat.“Am I after her job? Am I going to stick the knife between her shoulder blades and steal the crown? No, of course I’m not,” the veteran Tory cabinet minister told the laughing audience as he opened the awards ceremony.“You know that I’m not

2 days ago
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Rachel Reeves considers 20% tax on assets of people deciding to leave UK

Rich people quitting the UK could be required to pay a 20% tax on their business assets as part of plans reportedly being considered by the chancellor, Rachel Reeves.The Treasury has drawn up plans for a “settling-up charge” on assets; a move that would bring the UK into line with most other G7 nations and raise a predicted £2bn for the public coffers, according to the Times.While expat status does not provide an exemption from 20% capital gains tax on the sale of UK property and land valued at £6,000 or more, it does on the sale of some other assets, such as shares in many companies.Under the new plans, the 20% charge would be levied on the value of these assets when exiting the country.A government source said the settling-up charge was one of several tax options being modelled by the Treasury before the budget – but stressed that no decisions had been taken

3 days ago
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Ex-Tory member sues party over suspension for criticising Israel

A former Conservative member, whose grandfather was the archbishop of Jerusalem, is suing the party after he was suspended for making critical remarks about the state of Israel.Bruce MacInnes was told by Tory party officials that his “repeated allegation that Israel is committing genocide in Palestine” constituted “allegedly antisemitic”, “discriminatory” and “insensitive and highly offensive” language, which resulted in his suspension from the party last year.MacInnes, who says he did not initially know about the disciplinary proceedings despite the party claiming they had emailed him, is bringing legal action against the party for £30,000 in the high court for breach of contract and discrimination based on belief.The row has raised questions over freedom of speech within the party and has drawn criticism from former foreign minister Sir Alan Duncan who described the party’s treatment of MacInnes as “McCarthysim built on ignorance”.A member since 2018, MacInnes had often shared his views on the political situation in the Middle East on a WhatsApp group with other members

3 days ago
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Keir Starmer keeps Trumps’ silver necklace gift – for a price

Keir Starmer has paid to keep a personalised silver necklace given to him by Donald and Melania Trump, transparency records show.The necklace was the only gift Starmer chose to keep after he hosted the US president for a historic second state visit in September.The Trumps also gave the prime minister a golf club and a set of silver cufflinks, both personalised, but these were retained by the Cabinet Office. A pair of cowboy boots, given to Starmer’s wife, Victoria, by the Trumps has also been held by the department.Under government rules, ministers cannot keep official gifts worth more than £140 unless they pay the difference between £140 and the gift’s value

4 days ago
cultureSee all
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Jimmy Kimmel on government shutdown: ‘There is no Republican plan for healthcare’

6 days ago
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Steve Coogan says Richard III film was ‘story I wanted to tell’ as he agrees to libel settlement

8 days ago
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From White Teeth to Swing Time: Zadie Smith’s best books - ranked!

8 days ago
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Nobody Wants This to Lily Allen: the week in rave reviews

10 days ago
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Stephen Colbert on ex-prince Andrew: ‘Pervert formerly known as prince’

4 days ago
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A third of people in England believe in ghosts, survey finds

5 days ago