Recursive Superintelligence signs $400M cloud computing deal with AWS

In short: Recursive Superintelligence says it has signed a multi-year deal to buy about $400 million worth of computing power from Amazon Web Services.

What happened

Recursive Superintelligence, an AI company that publicly launched in May with $650 million in funding, announced a large “compute” deal with Amazon Web Services, also called AWS. “Compute” is the rented computer power used to train and run AI systems (like paying for electricity and machines in a remote factory instead of buying your own).

TechCrunch reports the deal is for $400 million, and also refers to it as a $410 million outlay. Either way, it is most of the money the company has raised so far.

The company’s CEO, Richard Socher, told TechCrunch that this may be the first of several such deals. He said the company is putting more of its budget into computer power and less into hiring, because it is trying to build systems that can improve themselves over time.

AWS said the agreement includes work to “co-develop infrastructure” built for companies like Recursive. In simple terms, that means AWS plans to adjust some of its cloud setup to better fit Recursive’s needs.

Why it matters

This is another sign of how expensive modern AI work can be. Even companies with hundreds of millions in funding may spend a large share just on the computers needed to do the work. Socher also said Recursive expects to show early, usable products around October, which will be an early test of whether this heavy spending quickly turns into tools people can actually try.

Source: TechCrunch AI