OpenAI has signed a $38 billion (£29 billion) agreement with Amazon to access its cloud computing infrastructure. The deal strengthens OpenAI’s computing capabilities as it accelerates the development of advanced artificial intelligence systems.
OpenAI expands its technology partnerships
In 2025, OpenAI secured over $1 trillion in deals with Oracle, Broadcom, AMD, and Nvidia. The Amazon agreement reduces its reliance 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 reshaped its partnership 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 partnership with Amazon Web Services strengthens the computing ecosystem needed to drive the next generation of AI innovation.
The deal reflects the growing 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 partnerships.
Strategic shift beyond Microsoft
The Amazon deal marks OpenAI’s push to diversify its computing sources. “This agreement shows OpenAI sees access to computing power as essential for AI leadership,” said Kim Forrest, chief investment officer at Bokeh Capital Partners.
With Microsoft reducing its stake, OpenAI can form partnerships with other major tech firms, reshaping competitive dynamics in the AI sector.
Growth comes with rising costs
OpenAI continues to invest heavily to maintain its lead in AI while remaining unprofitable. Microsoft’s recent quarterly report revealed OpenAI 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.”
Experts warn of potential AI bubble
The AI sector has seen unprecedented cross-investment, creating a complex web of financial ties under regulatory scrutiny. Some analysts 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.”
