OpenAI has signed a $38 billion (£29 billion) agreement with Amazon to access its vast cloud computing infrastructure. The move strengthens the ChatGPT creator’s technological base as it accelerates development of powerful artificial intelligence systems.
Expanding a trillion-dollar web of partnerships
In 2025, OpenAI has already signed deals worth more than $1 trillion with Oracle, Broadcom, AMD and Nvidia. The new partnership with Amazon lessens its dependence on Microsoft and opens access to crucial chip technology.
Under the seven-year deal, OpenAI will gain use of Nvidia’s advanced graphics processors via Amazon Web Services. The announcement follows a major internal overhaul last week that shifted OpenAI away from its non-profit roots and redefined its partnership with Microsoft, giving it greater operational independence.
Altman says partnership accelerates AI’s next chapter
“Scaling frontier AI requires massive, reliable compute,” said OpenAI’s co-founder and CEO Sam Altman. He added that the partnership with Amazon Web Services strengthens the computing network that will drive the next stage of AI and make it available to more people worldwide.
The deal underlines the global race to secure computing power amid a surge of investment in artificial intelligence. OpenAI, which made AI mainstream with the launch of ChatGPT in 2022, had long relied on Microsoft’s cloud services. Their exclusive contract ended in January, allowing OpenAI to seek new alliances.
A clear move away from Microsoft’s control
The partnership with Amazon marks OpenAI’s strongest shift yet toward a diversified cloud strategy. “This deal shows OpenAI believes leadership in AI depends on securing as much computing capacity as possible,” said Kim Forrest, chief investment officer at Bokeh Capital Partners.
Microsoft’s reduced influence has made room for new partnerships with its competitors, changing the balance of power among global tech giants.
Soaring costs as AI ambitions grow
OpenAI’s rapid growth comes at a high financial cost. Despite its influence, the company remains unprofitable. Microsoft’s recent earnings revealed that OpenAI lost $12 billion in the past quarter alone. Still, the firm continues to spend heavily to stay ahead in AI development.
Following the announcement, Amazon’s shares rose to an all-time high, boosting its market value by $140 billion (£106 billion). AWS chief executive Matt Garman said his company is “uniquely positioned to support OpenAI’s vast AI workloads.”
Analysts warn of a possible AI investment bubble
The artificial intelligence sector has seen an unprecedented surge in cross-investment, creating a dense web of financial links among tech companies. Regulators are watching closely as speculation grows that the market could overheat.
Sam Altman has acknowledged that investment levels are historic but said OpenAI’s rapid revenue growth justifies them. The Bank of England, the International Monetary Fund and major banking executives, including JP Morgan’s Jamie Dimon, have cautioned that “uncertainty should be higher in most people’s minds.”
