Hajra Naz
OpenAI has signed a massive $38 billion deal with Amazon to access its powerful cloud computing infrastructure, as the AI leader continues forming big partnerships to secure more computing power.
In 2025, the ChatGPT maker struck deals worth over $1 trillion with major tech players, including Oracle, Broadcom, AMD, and Nvidia. This latest partnership with Amazon Web Services (AWS) reduces OpenAI’s heavy reliance on Microsoft.
Under the seven-year deal, OpenAI will use Nvidia GPUs on Amazon’s cloud to train and scale its next-generation AI models. The partnership marks a major shift for OpenAI as it diversifies its computing base to meet growing demand for generative AI development.
The announcement comes right after OpenAI’s major corporate restructuring, which moved it away from its non-profit roots. The change gave the company more operational freedom and eased Microsoft’s control over its business operations.
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“Scaling frontier AI requires massive, reliable compute,” said Sam Altman, OpenAI’s co-founder and CEO. “Our partnership with AWS strengthens the computing ecosystem that powers this new AI era and helps bring advanced intelligence to everyone.”
The deal highlights the skyrocketing demand for AI infrastructure and data centers, driven by the global race to dominate artificial intelligence. Since launching ChatGPT in 2022, OpenAI has pushed AI into the mainstream—and its need for computing power has only intensified.
Previously, OpenAI relied almost entirely on Microsoft’s Azure for cloud access. The companies had an exclusive deal until January 2025, when the agreement was loosened to allow OpenAI to seek other partners.
Industry experts say the AWS partnership is a strategic move. Kim Forrest, chief investment officer at Bokeh Capital Partners, said.
“The deal shows OpenAI knows that its path to AI leadership depends on securing massive computing power.”
She noted that Microsoft’s reduced stake allowed OpenAI to form alliances with other cloud giants like Amazon.
Still, OpenAI remains unprofitable, spending heavily on computing resources and AI research. Reports from Microsoft’s latest earnings reveal OpenAI lost $12 billion last quarter while scaling its AI operations globally.
The announcement sparked excitement across markets. Amazon shares hit an all-time high, adding nearly $140 billion to its market valuation.
“AWS is uniquely positioned to handle OpenAI’s vast AI workloads,” said Matt Garman, CEO of Amazon Web Services. “Together, we’re building the infrastructure that will shape the future of artificial intelligence.”
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The deal adds to a growing web of AI partnerships and cross-investments among tech giants like Google, Anthropic, and Nvidia—raising concerns about an AI investment bubble.
Even so, Sam Altman remains confident. In a recent BBC interview, he said, “Yes, the investment numbers are huge, but so is our growth. We’ve never seen revenue scale like this before.”
Still, financial institutions, including the Bank of England, the IMF, and JP Morgan’s Jamie Dimon, have issued cautionary warnings about the pace and risk of AI sector expansion.
Frequently Asked Questions (FAQs)
1. Why did OpenAI choose Amazon Web Services (AWS)?
OpenAI partnered with AWS to gain access to advanced cloud computing and Nvidia GPU infrastructure, which helps train large AI and machine learning models faster and more efficiently.
2. Does this deal affect OpenAI’s partnership with Microsoft?
No, but it reduces dependence. OpenAI still collaborates with Microsoft Azure but is now diversifying its AI cloud infrastructure across multiple platforms.
3. How long will the $38B deal last?
The contract spans seven years, running through 2032, and includes long-term commitments for AI research, data center expansion, and GPU cloud resources.
4. Is OpenAI profitable after this deal?
Not yet. Despite massive revenue growth from ChatGPT and enterprise AI tools, OpenAI continues to report large expenses tied to computing power and global AI infrastructure.
5. Could this spark an AI investment bubble?
Analysts warn that skyrocketing investments in AI chips, cloud data centers, and AI startups could signal a bubble. However, companies like OpenAI and Amazon believe long-term AI adoption will balance out costs.
