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 pushes forward in developing advanced artificial intelligence systems.
OpenAI expands its tech partnerships
In 2025, OpenAI has secured over $1 trillion in deals with Oracle, Broadcom, AMD, and Nvidia. The Amazon agreement reduces its reliance on Microsoft and gives access to Nvidia’s high-performance processors through Amazon Web Services.
The seven-year deal follows a major internal restructure that ended OpenAI’s non-profit status and reshaped its partnership with Microsoft. The changes provide the company with greater operational freedom and financial flexibility.
Altman emphasizes the AI growth potential
“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 for the next generation of AI innovation.
The deal underscores soaring 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, allowing OpenAI to diversify its technology partners.
Strategic move beyond Microsoft
The Amazon partnership reflects OpenAI’s effort to diversify its computing resources. “This deal shows that OpenAI views 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 tech companies, reshaping competitive dynamics in the AI industry.
Rapid 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 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.”
Analysts warn of potential AI investment bubble
The AI sector has seen unprecedented cross-investment, creating a complex network of financial ties under regulatory scrutiny. Some experts warn that 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.”
