OpenAI has signed a $38 billion (£29 billion) agreement with Amazon to access its cloud computing infrastructure. The deal strengthens OpenAI’s computing power as it advances the development of next-generation artificial intelligence systems.
OpenAI broadens technology partnerships
In 2025, OpenAI secured over $1 trillion in deals with Oracle, Broadcom, AMD, and Nvidia. The Amazon partnership reduces its reliance on Microsoft and provides access to Nvidia’s high-performance processors through Amazon Web Services.
The seven-year agreement follows a major restructure that ended OpenAI’s non-profit status and redefined its relationship with Microsoft. The changes give the company greater operational freedom and financial flexibility.
Altman highlights the deal’s impact on AI
“Scaling frontier AI requires massive, reliable compute,” said OpenAI co-founder and CEO Sam Altman. He added that the Amazon Web Services partnership strengthens the computing ecosystem needed to support the next wave of AI innovation.
The deal reflects soaring global demand for computing power. OpenAI, which popularized AI with ChatGPT in 2022, had relied heavily on Microsoft’s cloud services. Their exclusive arrangement ended in January, allowing OpenAI to diversify its technology partners.
Strategic shift away from Microsoft
The Amazon agreement marks OpenAI’s effort to diversify its computing resources. “This deal shows OpenAI sees access to computing power as essential for maintaining AI leadership,” said Kim Forrest, chief investment officer at Bokeh Capital Partners.
With Microsoft reducing its stake, OpenAI can now collaborate with other major tech companies, reshaping competitive dynamics in the AI sector.
Growth comes with significant costs
OpenAI continues to invest heavily to maintain its lead in AI, remaining unprofitable despite its market influence. Microsoft’s latest quarterly report showed the company lost $12 billion in the past three months.
Following the announcement, Amazon’s shares surged to a record high, adding $140 billion (£106 billion) to its market value. AWS chief executive Matt Garman said the platform is “uniquely positioned to support OpenAI’s vast AI workloads.”
Analysts warn of potential AI investment bubble
The AI sector has seen unprecedented cross-investment, creating a dense web of financial ties under regulatory scrutiny. Some experts warn this rapid spending could indicate a market bubble.
Sam Altman acknowledged the historic scale of investment but said OpenAI’s rapid revenue growth justifies it. Authorities including the Bank of England and the International Monetary Fund have expressed concern. JP Morgan CEO Jamie Dimon warned that “the level of uncertainty should be higher in most people’s minds.”
