OpenAI has signed a $38 billion (£29 billion) agreement with Amazon to access its cloud computing infrastructure. The deal gives OpenAI greater computing power as it advances the development of cutting-edge artificial intelligence systems.
OpenAI strengthens global tech partnerships
In 2025, OpenAI has secured over $1 trillion in agreements with Oracle, Broadcom, AMD and Nvidia. The new deal with Amazon reduces its reliance on Microsoft and provides access to Nvidia’s top-tier processors through Amazon Web Services.
The seven-year contract follows a major internal restructure that ended OpenAI’s non-profit status and reshaped its relationship with Microsoft. The changes provide the company with more financial flexibility and operational freedom.
Altman emphasizes role in AI growth
“Scaling frontier AI requires massive, reliable compute,” said OpenAI co-founder and CEO Sam Altman. He added that partnering with Amazon Web Services strengthens the computing network that will support the next generation of AI innovation.
The agreement underscores the rising global demand for computing power. OpenAI, which made AI mainstream with ChatGPT in 2022, had relied heavily on Microsoft’s cloud services. Their exclusive deal ended in January, opening the door for diversified partnerships.
Strategic diversification beyond Microsoft
The Amazon deal marks a clear move toward diversifying OpenAI’s computing sources. “This partnership shows that OpenAI views access to computing power as critical to maintaining leadership in AI,” said Kim Forrest, chief investment officer at Bokeh Capital Partners.
With Microsoft taking a smaller role, OpenAI can now partner with other major tech firms, reshaping competitive dynamics in the AI industry.
Growth comes with significant costs
OpenAI continues to invest heavily to stay ahead, remaining unprofitable despite its market influence. Microsoft’s latest quarterly report revealed OpenAI lost $12 billion in the last quarter.
Following the announcement, Amazon shares reached an all-time 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 possible 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 could signal a potential investment bubble.
Sam Altman acknowledged the historic scale of investments but argued that 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 warned that “the level of uncertainty should be higher in most people’s minds.”
