OpenAI has entered a $38 billion (£29 billion) agreement with Amazon to access its cloud computing infrastructure. The deal strengthens OpenAI’s computing capacity as it pushes forward in building next-generation artificial intelligence systems.
OpenAI broadens its technology partnerships
In 2025, OpenAI has secured over $1 trillion in deals with Oracle, Broadcom, AMD, and Nvidia. The Amazon agreement reduces its dependence on Microsoft and provides access to Nvidia’s high-performance processors through Amazon Web Services.
The seven-year deal follows a major company 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 emphasizes role in next AI wave
“Scaling frontier AI requires massive, reliable compute,” said OpenAI co-founder and CEO Sam Altman. He added that working with Amazon Web Services strengthens the computing ecosystem needed to drive the next generation of AI innovation.
The deal highlights the growing global demand for computing power. OpenAI, which popularized AI with ChatGPT in 2022, had relied on Microsoft’s cloud services for years. Their exclusive partnership ended in January, allowing OpenAI to expand its network of partners.
Strategic shift away from Microsoft
The Amazon partnership reflects OpenAI’s effort to diversify its computing sources. “This agreement shows OpenAI sees access to computing power as critical to maintaining AI leadership,” said Kim Forrest, chief investment officer at Bokeh Capital Partners.
With Microsoft reducing its stake, OpenAI can pursue collaborations with other tech firms, reshaping competitive dynamics in the AI industry.
Rapid growth comes with high costs
OpenAI continues to invest heavily to stay ahead in AI, remaining unprofitable despite its influence. Microsoft’s recent quarterly report showed OpenAI lost $12 billion in the past three months.
After the announcement, Amazon’s shares reached an all-time high, adding $140 billion (£106 billion) to its valuation. 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
AI companies are investing heavily in one another, creating a dense network of financial ties under regulatory scrutiny. Some experts warn this level of spending could indicate a market bubble.
Sam Altman acknowledged the unprecedented scale of investments but said OpenAI’s rapid revenue growth justifies it. Authorities including the Bank of England and the International Monetary Fund have raised concerns. JP Morgan CEO Jamie Dimon said that “the level of uncertainty should be higher in most people’s minds.”
