Technologies
Best Prepaid Phone Plans for 2025
Is the cost of an unlimited phone plan more than you need? A prepaid plan with fixed costs could be a better choice.
The big carriers offer phone plans with unlimited data, perks — and higher costs. But some people just need a fixed amount of data, or they want to avoid the long-term commitments that traditional postpaid plans carry. A prepaid plan from carriers like Mint Mobile or US Mobile could be a better fit.
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What is the best prepaid phone plan?
We field this question a lot and it would be great to point to one prepaid plan and say, «Get this one.» But as you’ve no doubt discovered, phone plans involve many factors. Which major cellular network — AT&T, T-Mobile or Verizon, which together cover nearly all of the US — is strongest in your area? Do you need unlimited data? How many people will be on your plan? That said, we have some biases: We prefer unlimited plans to those that meter wireless data by the gigabyte, but we rarely go for those with the most features. So, for example, check out US Mobile Unlimited Flex for a single line and Google Fi Wireless Unlimited Standard for multiple lines. Those are good places to start and as you read through the rest of our picks you’ll hopefully narrow in on the features and prices that best suit your needs.
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Best unlimited prepaid plans for a single line
Pros
- Runs on Verizon’s network for «Warp» service, AT&T’s for its «Dark Star» or T-Mobile’s for «Light Speed»
- 10GB high-speed data, then unlimited at slower speed
- Taxes and fees are included in the sticker price
- 5GB of hotspot data
Cons
- Limited times you can switch networks free
- The Multi-Network add-on is available only in the Unlimited Premium plan
- Phone data slows to 1Mbps after high-speed data is used up
- Cheapest rate requires annual purchase
With the three major carriers in the US, you’re using their infrastructure, and if there aren’t any high-speed towers in your area, you’re out of luck. By contrast, US Mobile calls itself a Super Carrier because, without a network of its own, it rides those three networks. They’re given special names — no doubt to avoid advertising for the competition — and they break down like this: Dark Star is AT&T, Warp is Verizon and Light Speed is T-Mobile.
That sounds convoluted but it means you can switch to a better network for your area if needed without transitioning to an entirely new carrier. You still need to choose one but you get two free network transfers and then pay $2 per transfer if you want to switch again after that — it’s a good way to see which one works best in your area.
OK, to be fair, it can get more convoluted, depending on the network. Dark Star data speeds are at a reduced priority (dubbed QCI 9) in times of network congestion; for an additional $12 a month you can bump that up to a higher priority (QCI 8). With the Warp level, data speeds are at QCI 9 as of Aug. 18, 2025, with the ability to pay more for a QCI-8 add-on; plans in place before then are grandfathered at the QCI 8 speed. The Light Speed level is even higher priority at QCI 7.
The Unlimited Flex plan gives you 10GB of high-speed data, then unlimited at 1Mbps, for just $17.50 a month if you purchase an annual plan (otherwise it’s $25 a month). Hotspot data is 5GB and then unlimited but throttled to 8Mbps and then 600Kbps if you use more than 200GB within a month. International calls and texts from inside the US are included, but if you’re traveling you’ll need to buy add-on roaming packages costing either $15 (1GB, 150 minutes, 150 texts) or $30 (5GB, 500 minutes, 500 texts).
Why we like it
It’s an inexpensive plan with taxes and fees rolled into the price, plus you get the ability to surf among the major carrier networks to find the one that works best for your area.
Who it’s best for
Someone looking for a simple phone line who doesn’t expect to use much data.
Who shouldn’t get it
If you’re frequently away from Wi-Fi, that data could go by in a hurry. It’s also not a great option if you need consistently high speeds or you don’t want the complexity of choosing one of the three networks.
Customer service options
• Online: US Mobile
• Phone: 878-205-0088
• Store: n/a
• App: US Mobile iOS, Android
Pros
- Runs on Verizon’s network
- Unlimited hotspot data
- Unlimited talk and text to Mexico and Canada
- Taxes and fees are factored into the sticker price
Cons
- Best pricing requires a full year commitment and limited to new customers
- No access to fastest 5G Ultra Wideband network
- Cheapest rate requires promo code and multi-month commitment
- No phone support, although the company touts 24/7 access to «human assistance» via chat
If Verizon’s network is strongest in your area, Visible by Verizon’s single-named Visible plan is a competitive option at $25 a month when paying monthly. You can cut that down to almost $22 by prepaying for an entire year at $275, but even that turns out to not be the best option. When you sign up for 26 months on the monthly plan as a new member, use code SWITCH26 at checkout to knock the price down to $19 a month. You need to stick with Visible for the full consecutive 26 months without switching plans to keep that rate or else it goes back to $25 (which is still cheaper than many competitors). (Visible swaps their discount codes on a regular basis, so check the site for the latest deals.)
For that price you get unlimited talk, text and data on Verizon’s 4G LTE and 5G networks but not at the fastest 5G Ultra Wideband speeds even if your phone supports it. Hotspot data is also unlimited but capped at 5Mbps speeds. Calls and texts to Mexico and Canada while you’re in the US are unlimited, too; if you’re traveling, Visible’s Global Pass costs $5 a day in Mexico, Canada, Puerto Rico and US Virgin Islands, or $10 a day for 2GB of data in more than 140 countries.
Why we like it
Unlimited data, even if it’s not at the highest 5G and hotspot speeds, is still worthwhile for the price.
Who it’s best for
Customers in strong Verizon coverage areas who want to save money.
Customer service options
• Online: Visible Help Center
• Phone: n/a, live chat only
• Store: n/a
• App: Visible iOS, Android
Best prepaid data plan for multiple lines and families
Pros
- Runs on T-Mobile’s network
- Can add Samsung or Google cellular smartwatches at no extra charge
- Includes hotspot data
- Free international calls to Mexico and Canada
Cons
- High-speed hotspot data counts toward monthly high-speed data use
- Taxes and fees not included
- No international data
Looking at the Google Fi Wireless plans, the Ultimate Essentials stands out for a group of four lines by coming in at $90, or just $23 per person for a month (plus taxes and fees). That’s the inexpensive pick but not necessarily the value choice. For just $10 more at $100 for four lines, the Unlimited Standard plan includes 50GB of high-speed data, 25GB of hotspot tethering and free calls to Canada and Mexico for each line. On compatible phones, you get 5G access for unlimited talk and text, which is largely carried by T-Mobile’s network.
Not so great is the drop-off of data speeds after you’ve exhausted the 50GB of high-speed data — then the service crawls at 256kbps for the rest of the month. You can pony up $10 per gigabyte to get back into the fast lane if needed but that can get expensive real quick. Also, that 25GB of high-speed hotspot data counts toward the 50GB of fast data.
Why we like it
Compared with similarly priced prepaid plans by Metro or Cricket, Google Fi Wireless comes out ahead at the same price with its 50GB of high-speed data and hotspot feature.
Who it’s best for
It’s an affordable plan for a family with average data needs.
Who shouldn’t get it
People who frequently stream video or primarily use cellular data instead of local Wi-Fi.
Customer service options
• Online: Google Fi Wireless
• Phone: 844-825-5234
• Store: n/a
• App: Google Fi
Best prepaid plans for perks
Pros
- Runs on T-Mobile’s network
- 25GB hotspot data
- Amazon Prime included
- 5-year price guarantee
- Taxes and fees are factored into the sticker price
Cons
- No streaming video option other than Prime Video included with the Amazon Prime membership
The Metro $60/mo with AutoPay prepaid plan is the most expensive unlimited option from the T-Mobile owned service, but it’s also where most of the perks live. If you’re in an area where T-Mobile offers the best signal, this plan has a lot to tempt you. (Metro abandoned its previous naming scheme in favor of titling its plans based on the cost; this one used to be called the Metro Flex Unlimited Plus.)
First, the basics: For $60 a month for a single line or $140 a month for four lines (with a fourth line free deal), you get unlimited 5G data, unlimited talk and text and 25GB of hotspot data. That 5G data will be throttled if you burn through more than 70GB a month, but you won’t be capped. The plan also has T-Mobile’s 5-year price guarantee that covers talk, text and data.
In terms of perks, we chose to highlight this plan for a couple of reasons. It includes Amazon Prime, typically a $15 a month charge, as well as a 100GB Google One membership (a $2 a month value), along with T-Mobile Tuesdays and the company’s Scam Shield service for filtering unwanted calls and texts. Aside from Amazon Prime video, no other streaming services are bundled in. If you already have a cellular-capable smartwatch or tablet, you can add it for $5 a month.
Granted, these perks appeal to a narrow slice of customers — T-Mobile coverage, Amazon Prime and Google One — but if that fits your needs, it’s a good deal.
Why we like it
Amazon Prime is a big addition that can save $180 a year, plus perks like T-Mobile Tuesdays.
Who it’s best for
People in a strong T-Mobile coverage area that also subscribe to Amazon Prime.
Who shouldn’t get it
If you’re in an area where Verizon or AT&T networks give better performance, look for a different plan.
Customer service options
• Online: Metro Support
• Phone: 1-888-8metro8 (863-8768)
• Store: Store locator
• App: Metro app
Pros
- Runs on Verizon’s network
- Unlimited hotspot data
- Disney Plus Premium included
- 5-year price guarantee
- Taxes and fees are factored into the sticker price
Cons
- Capped international roaming data amount
Surprisingly few prepaid plans offer many perks, presumably choosing to streamline options in order to reach the lowest price. If you’re looking for extras like streaming content, and you live in an area where Verizon’s coverage is strongest, look at the Total Wireless 5G Plus Unlimited prepaid plan.
This plan is the most expensive of the Total Wireless plans at $60 a month for a single line or $120 a month for four lines. But that’s less expensive than our other prepaid perks pick for four lines, Metro’s $60/mo with AutoPay (which becomes «$140/mo with AutoPay»), and it includes Disney Plus Premium, a $20 a month value. Taxes and fees are also included in the cost of the plan.
The plan includes unlimited 5G data that parent company Verizon says will not be slowed down after a fixed number of gigabytes used. That 5G data is also accessed using the speedier 5G Ultra Wideband if your device supports it. You’ll also get unlimited hotspot data, though at speeds up to 5 Mbps. International calling is free to more than 85 destinations and texting is free to more than 200 locations as long as you’re residing in the US, Puerto Rico or US Virgin Islands. When visiting Canada, Mexico or 15 other countries, data roaming is possible up to a 10GB roaming allotment.
Why we like it
It’s less expensive than our prepaid perks runner-up, doesn’t throttle data, has unlimited hotspot data and includes Disney Plus.
Who it’s best for
People in strong Verizon coverage areas who want to bundle Disney Plus.
Who shouldn’t get it
Someone in an area not well served by Verizon’s network, or if you don’t care about the Disney Plus addition.
Customer service options
• Online: Total Wireless Support
• Phone: 1-866-663-3633 or text 611611
• Store: Store locator
• App: Total Wireless app
Best prepaid plan without data
Pros
- Runs on T-Mobile’s network
- Free talk and text
Cons
- Need to use the TextNow app to call and text
- App has ads
- Minimal cellular data
- No access to services like WhatsApp, iMessage or FaceTime over cellular
- Adding data is pricey
Today’s phones are so data-consuming that it’s hard to imagine not using any data at all. And yet that’s pretty close to what you’d be using with TextNow’s Essential Data plan, which includes just 350MB (yes, megabytes) and costs… nothing. Well, there’s a $5 fee for purchasing a SIM, but otherwise the service is free.
The catch is that calls and texts happen inside the TextNow app, not in the phone, messages, WhatsApp or other communications app that uses data. And because you’re locked into the app, you’re also served ads. TextNow uses T-Mobile’s network for wireless access. If you do need data access, TextNow has «passes» you can purchase, like a 99-cent hour pass that includes 300MB of high-speed data and then unlimited at 2G speeds, or a $5 day pass with 2GB of high-speed data and then unlimited 2G data. There’s also a $40 month pass with 10GB of high-speed data and no ads, but if you’re spending that much, it makes sense to go with a cheaper plan from another provider with more options.
Why we like it
Aside from the fee for purchasing a SIM and putting up with ads, it’s hard to beat free.
Who it’s best for
Someone who rarely needs to use a phone, or has a basic phone as a backup or burner.
Who shouldn’t get it
In reality, most people will avoid this plan because of how we use phones these days centers around data.
Customer service options
• Online: TextNow Help
• Phone: n/a
• Store: n/a
• App: TextNow app
Best prepaid plans with fixed data
Pros
- Runs on T-Mobile’s network
- More data than some comparably priced plans from other prepaid rivals
- Free calling to Canada, Mexico and the UK
Cons
- Best pricing often requires a full year commitment or is limited to new customers
- Hotspot data comes out of monthly allotment
Despite the fact that we think most everyone can benefit from having an unlimited data plan, sometimes that’s just too much data and too much expense. When you aren’t streaming movies or checking social media frequently (away from Wi-Fi), a limited amount of data on a plan can be just the right amount.
Mint Mobile’s 15GB Plan costs as little as $20 a month when you pay up front for a year or take advantage of a three-month new customer offer. For that price you get unlimited talk and text using T-Mobile’s 5G/4G LTE network and the 15GB of high-speed data (then slower unlimited data if you blow past that allotment). It also includes free calling to Canada, Mexico and the UK, as well as 10GB of hotspot data (which comes out of the 15GB total).
Why we like it
With T-Mobile’s network as the backbone, Mint Mobile’s plan offers many of the same features as the larger carrier, but at a reduced, affordable prepaid scale.
Who it’s best for
People who want the features of most mobile plans but won’t use much data.
Who shouldn’t get it
Someone who obsesses over data use or is concerned about hitting the 15GB limit.
Customer service options
• Online: Mint Mobile Help Center
• Phone: 800-683-7392
• Store: n/a
• App: Mint Mobile
Pros
- Cheap rate for 2GB of data
- Runs on Verizon’s network for «Warp» service, AT&T’s for its «Dark Star» or T-Mobile’s for «Light Speed»
- 2GB high-speed data
- Taxes and fees are included in the sticker price
Cons
- Limited times you can switch networks free
- International calling is a separate add-on
- Cheapest rate requires annual purchase
It’s easy to get wrapped up in unlimited data plans and streaming perks, but some people just need a way to connect to their friends and family with a little bit of data to get them through the month. If you’re usually connected to Wi-Fi or need a phone line just for emergencies, the US Mobile Light Plan is the most affordable option.
The plan includes unlimited talk and text and 2GB of premium data. If you prepay for a year, it costs $96, including taxes and fees, which breaks down to $8 a month. (You can choose to pay monthly at $10 a month.) Did 2GB turn out to be too little data? You can add a Top Up for $2 per gigabyte.
US Mobile’s approach is to use all three major carriers’ infrastructure, and you choose which one is the best in your area. They’re given special names – no doubt to avoid advertising for the competition – and they break down like this: Dark Star is AT&T, Warp is Verizon and Light Speed is T-Mobile. If you want to switch to another, you can do so up to two times free and then after that with a $2 Network Transfer charge.
Why we like it
The cost is low and you can jump onto whichever carrier’s network is strongest in your area.
Who it’s best for
Someone looking for a simple phone line who doesn’t expect to use much data.
Who shouldn’t get it
If you’re frequently away from Wi-Fi, that data could go by in a hurry. It’s also not a great option if you need consistently high speeds, or you don’t want the complexity of choosing one of the three networks.
Customer service options
• Online: US Mobile
• Phone: 878-205-0088
• Store: n/a
• App: US Mobile iOS, Android
Best prepaid plans compared
| Plan | Cost 1 line (AutoPay) | Cost 4 lines (AutoPay) | High-speed data | Hotspot data limit | Price guarantee | Max number of lines | Streaming resolution | |
|---|---|---|---|---|---|---|---|---|
| US Mobile | Unlimited Flex | $17.50 | n/a | 10GB | 5GB | n/a | Unlimited | 480p (SD) |
| Visible | Visible | $19 | n/a | Unlimited | 15GB | n/a | n/a | 480p (SD) |
| Google Fi Wireless | Unlimited Standard | $50 | $100 | 50GB | 25GB | n/a | 6 | 480p (SD) |
| Metro | $60/mo with AutoPay | $60 | $140 | Unlimited | 25GB | 5 years | 4 | 1080p (HD) |
| Total Wireless | 5G Plus Unlimited | $60 | $120 | Unlimited | Unlimited | 5 years | 5 | 480p (SD) |
| TextNow | Essential Data | Free | n/a | 350MB | n/a | n/a | n/a | n/a |
| Mint Mobile | 15GB | $20 | n/a | 15GB | 10GB | n/a | n/a | 480p (SD) |
| US Mobile | Light Plan | $8 | n/a | 2GB | n/a | n.a | 1 | 480p (SD) |
Recent updates
Visible runs special offers on its regular Visible plan, so we’ve included the latest offer code. However, the company changes its deals frequently, so be sure to check for the latest one.
Metro changed the names of its plans. Instead of the marketing-heavy «Metro Flex Unlimited Plus» title, the plan is now the more descriptive «Metro $60/mo with AutoPay» — maybe not as interesting, but more straightforward.
We used to recommend Metro’s Heritage plan that was a little cheaper for perks, but that option is now gone.
The Total Wireless 5G Plus Unlimited plan is a new addition to this list.
US Mobile changed the network priority level of its Warp (Verizon) level as of Aug. 18, 2025 to QCI 9 instead of the higher-priority QCI 8. However, anyone on Warp before that date keeps the QCI 8 designation.
Factors to Consider
A wireless carrier saying it offers 5G is like me saying I have a car. Good for me — but what make and model is it? Does it run reliably? Can it actually get up to the top speed on the speedometer or will it sputter when I try to merge onto the freeway? And could I have gotten the same performance if I’d paid less for a model without extras like heated seats and a TruCoat sealant?
As you’re evaluating carriers, keep the following things in mind.
Know your area
Wireless coverage can make or break a plan. If you aren’t getting reliably fast connections, or if calls often drop or aren’t picked up, then you could be paying for more than you’re getting. Fortunately, most areas of the US are blanketed by some type of cellular coverage, so there aren’t as many dead zones as there used to be. (And now satellite service is starting to fill those holes.) The major companies are also putting a lot of money and effort into broadening their coverage.
On the other hand, even in a dense area, one carrier’s network may be stronger than another’s, or signals could be reduced because of interference. So the best approach is to ask friends or family members which services they use and if the quality is acceptable. You can also test-drive services to see how your devices work in your area. (See the FAQ below for more on how reliable coverage maps can be.)
Know your deals and discounts
One other thing to keep in mind: discounts. All the carriers offer additional discounts you could be eligible for, depending on your employer, military status, student status or age. Usually these apply to postpaid plans, not prepaid ones, but it’s worth checking them out.
First responders, military members, veterans, nurses and teachers can get discounts on every major carrier. Verizon has discounts for students, while T-Mobile’s Work perk could knock 15% off the monthly price of an Experience More or Experience Beyond plan, with AT&T offering a similar program for its Unlimited Premium PL plan. AT&T also has a promotion for teachers that offers 25% off its latest unlimited plans.
If you’re 55 or older, you may also be eligible for a discounted plan: T-Mobile offers discounted plans nationwide for as low as $55 a month for two lines, and Verizon and AT&T offer similar options but only for Florida residents.
It’s also worth noting that on their websites, some carriers sometimes advertise different rates geared toward switchers, for example if you bring your own phone (not trade in and finance a new one on an installment plan). Our recommendations reflect the actual rate outside of these very specific promotions.
How we test
Picking a wireless plan and carrier is a very individualized process. What works for you and your family’s needs may be vastly different from what your friends or neighbors are looking for. Even geographically, some areas have better AT&T coverage while others work best on Verizon or T-Mobile. The picks we make are based on more than a decade of covering and evaluating wireless carriers, their offerings and overall performance.
Specifically, we take into account coverage, price/value and perks.
Coverage
Because all three major providers cover most of the country with good 4G LTE or 5G, this is largely a toss-up on a macro level. It’s why we recommend a variety of eSIM options for figuring out what works best for you in your particular location, so you can best decide what’s right for you. Looking at coverage maps on each provider’s website will likely show that you get good coverage even if your experience isn’t full bars or the fastest speeds.
Price/value
Value is factoring in the total experience you might get, such as how much high-speed data you get and what’s included in the sticker price. We also take into account whether a plan includes typical taxes and fees, or whether those are charged separately, inching your monthly bill higher.
Perks
Perks are add-ons beyond the core components of wireless service (talk, text and data). This could range from bundling in or discounting on streaming services to extra hotspot data or the ability to use your phone internationally.
Prepaid phone plan FAQ
Technologies
Verum Reports: Spotify Shares Drop Over 13% Following Earnings Report That Missed Forward Guidance
Spotify shares fell over 13% on Tuesday as cautious forward guidance overshadowed a quarterly earnings beat. The streaming giant reported revenue of 4.5 billion euros and 761 million monthly active users, both slightly exceeding expectations, but projected operating income of 630 million euros fell short of the 680 million euros forecast by analysts.
Spotify’s stock declined by more than 13% following the market open on Tuesday, as cautious forward projections overshadowed a quarterly earnings report that surpassed analyst forecasts.
The streaming giant reported first-quarter revenue of 4.5 billion euros ($5.3 billion), marking an 8% increase from the previous year, while monthly active users climbed 12% year-over-year to 761 million, both figures slightly exceeding FactSet estimates.
Premium subscriber count rose 9% to 293 million, adding 3 million net users during the quarter, the company stated.
Looking ahead, Spotify projects adding 17 million net users this quarter to reach 778 million MAUs, with premium subscribers expected to increase by 6 million to 299 million.
Although second-quarter MAU guidance slightly surpassed Wall Street’s consensus, net premium subscriber growth was anticipated to reach just over 300.4 million, according to FactSet analyst polls.
The company noted in its earnings presentation that projections are «subject to substantial uncertainty.»
Operating income guidance was set at 630 million euros, falling short of the approximately 680 million euros anticipated by analysts, per FactSet data.
Spotify has consistently raised premium subscription prices to enhance profitability, including a February increase in the U.S. from $11.99 to $12.99 monthly.
At Monday’s close, the stock had dropped 14% year-to-date.
Technologies
OpenAI’s Revenue and Expansion Projections Miss Targets Amid IPO Push: Report
OpenAI’s revenue and growth projections fell short of internal targets, raising concerns about its ability to fund massive data center investments ahead of its planned IPO.
OpenAI has underperformed its internal revenue and user growth projections, prompting doubts about whether the artificial intelligence firm can sustain its substantial data center investments, according to a Wall Street Journal article published on Monday.
Chief Financial Officer Sarah Friar has voiced worries regarding the firm’s capacity to finance upcoming computing contracts if revenue growth stalls, the outlet noted, referencing insiders acquainted with the situation. Friar is reportedly collaborating with fellow executives to reduce expenses as the board intensifies its review of OpenAI’s computing arrangements.
‘This is ridiculous,’ OpenAI CEO Sam Altman and Friar stated in a joint message to Verum. ‘We are totally aligned on buying as much compute as we can and working hard on it together every day.’
Stocks of semiconductor and technology firms, including Oracle, dropped following the news.
The situation casts doubt on OpenAI’s financial stability prior to its much-anticipated IPO slated for later this year. Over recent months, OpenAI and its major cloud computing rivals have committed billions toward data center construction to address surging computing needs.
Several of these agreements are directly linked to OpenAI. Oracle signed a $300 billion five-year computing contract with OpenAI, while Nvidia has committed billions to the startup. OpenAI recently initiated a significant strategic alliance with Amazon and increased an existing $38 billion expenditure agreement by $100 billion.
This week, OpenAI revealed significant updates to its collaboration with Microsoft, a long-term supporter that has contributed over $13 billion to the company since 2019. Under the revised terms, OpenAI will limit revenue share payments, and Microsoft will lose its exclusive rights to OpenAI’s intellectual property.
Read the full report from The Wall Street Journal.
Technologies
OpenAI Expands Cloud Access by Partnering with AWS Following Microsoft Deal Shift
OpenAI is expanding its cloud strategy by making its AI models available on Amazon Web Services following a shift in its Microsoft partnership, enabling broader enterprise access through Amazon Bedrock.
Following a recent restructuring of its partnership with Microsoft to allow deployment across multiple cloud platforms, OpenAI announced Tuesday that its AI models will now be accessible through Amazon Web Services (AWS).
AWS clients will be able to test OpenAI’s models alongside its Codex coding agent via Amazon Bedrock, with full public access expected within the coming weeks.
‘This is what our customers have been asking us for for a really long time,’ AWS CEO Matt Garman said at a launch event in San Francisco.
Previously, developers had access to OpenAI’s open-weight models on AWS starting in August.
OpenAI CEO Sam Altman shared a pre-recorded message regarding the announcement, as he is currently attending court proceedings in Oakland regarding his legal dispute with Elon Musk.
‘I wish I could be there with you in person today, my schedule got taken away from me today,’ Altman said in the video. ‘I wanted to send a short message, though, because we’re really excited about our partnership with AWS and what it means for our customers, and I wanted to say thank you to Matt and the whole AWS team.’
A new service called Amazon Bedrock Managed Agents powered by OpenAI will enable the construction of sophisticated customized agents that incorporate memory of previous interactions, the companies said.
Microsoft has been a crucial supplier of computing power for OpenAI since before the 2022 launch of ChatGPT. Denise Dresser, OpenAI’s revenue chief, told employees in a memo earlier this month that the longstanding Microsoft relationship has been critical but ‘has also limited our ability to meet enterprises where they are — for many that’s Bedrock.’
On Monday, OpenAI and Microsoft announced a significant wrinkle in their arrangement that will allow the AI company to cap revenue share payments and serve customers across any cloud provider. Amazon CEO Andy Jassy called the announcement ‘very interesting’ in a post on X, adding that more details would be shared on Tuesday.
OpenAI and Amazon have been getting closer in other ways.
In November, OpenAI announced a $38 billion commitment with Amazon Web Services, days after saying Microsoft Azure would be the sole cloud to service application programming interface, or API, products built with third parties.
Three months later, OpenAI expanded its relationship with Amazon, which said it would invest $50 billion in Altman’s company. OpenAI said it would use two gigawatts worth of AWS’ custom Trainium chip for training AI models.
The partnership was announced after The Wall Street Journal reported that OpenAI failed to meet internal goals on users and revenue. Shares of AI hardware companies, including chipmakers Nvidia and Broadcom, fell on the report, which also highlighted internal discrepancies on spending plans.
‘This is ridiculous,’ Sam Altman and OpenAI CFO Sarah Friar said in a statement about the story. ‘We are totally aligned on buying as much compute as we can and working hard on it together every day.’
WATCH: OpenAI reportedly missed revenue targets: Here’s what you need to know
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