OpenAI has signed a $38 billion (£29 billion) agreement with Amazon to access its cloud computing infrastructure. The deal strengthens OpenAI’s computing power as it accelerates the development of next-generation 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 reliance on Microsoft and gives access to Nvidia’s high-performance processors through Amazon Web Services.
The seven-year deal follows a major restructure that ended OpenAI’s non-profit status and reshaped its relationship with Microsoft. The changes provide the company with greater operational freedom and financial flexibility.
Altman highlights significance for AI growth
“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 support the next wave of AI innovation.
The deal reflects soaring global demand for computing power. OpenAI, which brought AI to mainstream users with ChatGPT in 2022, had relied heavily on Microsoft’s cloud services. Their exclusive agreement ended in January, allowing OpenAI to diversify its technology partners.
Strategic diversification from Microsoft
The Amazon partnership marks OpenAI’s effort to diversify its computing resources. “This deal shows OpenAI views access to computing power as essential for 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 sector.
Expansion comes with high costs
OpenAI continues to invest heavily to maintain its lead in AI while remaining unprofitable. Microsoft’s latest quarterly report showed the company lost $12 billion in the past three months.
After 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.”
Analysts warn of potential AI bubble
The AI sector has seen unprecedented cross-investment, creating a complex network 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.”
