OpenAI has signed a $38 billion (£29 billion) agreement with Amazon to access its cloud computing infrastructure. The deal strengthens OpenAI’s computing capacity as it advances the development of next-generation AI systems.
OpenAI expands its technology network
In 2025, OpenAI has secured over $1 trillion in deals with Oracle, Broadcom, AMD, and Nvidia. The new partnership with Amazon reduces reliance on Microsoft and provides access to Nvidia’s high-performance processors through Amazon Web Services.
The seven-year agreement follows a major internal restructure that ended OpenAI’s non-profit status and reshaped its partnership with Microsoft. The changes give the company more operational freedom and financial independence.
Altman says deal powers the future of 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 generation of AI innovation.
The agreement highlights the soaring global demand for computing power. OpenAI, which popularized AI with ChatGPT in 2022, had relied heavily on Microsoft’s cloud services. Their exclusive deal ended in January, allowing OpenAI to diversify its technology partners.
Strategic shift beyond Microsoft
The Amazon deal marks OpenAI’s move to diversify its computing resources. “This agreement shows OpenAI sees access to computing power as essential to maintaining AI leadership,” said Kim Forrest, chief investment officer at Bokeh Capital Partners.
With Microsoft reducing its stake, OpenAI can now partner with other major tech firms, reshaping competitive dynamics in the AI industry.
Growth comes with rising 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 last three months.
After the announcement, Amazon 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.”
Experts warn of potential AI investment bubble
The AI sector has seen unprecedented cross-investment, creating a complex web of financial ties under regulatory scrutiny. Some analysts warn that this level of 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 said that “the level of uncertainty should be higher in most people’s minds.”
