OpenAI has signed a $38 billion (£29 billion) agreement with Amazon to access its cloud computing infrastructure. The deal boosts OpenAI’s computing power as it accelerates development of advanced artificial intelligence systems.
OpenAI broadens its tech partnerships
In 2025, OpenAI secured over $1 trillion in agreements with Oracle, Broadcom, AMD, and Nvidia. The Amazon deal reduces reliance on Microsoft and provides access to Nvidia’s high-performance processors through Amazon Web Services.
The seven-year agreement comes after a major restructure that ended OpenAI’s non-profit status and redefined its relationship with Microsoft. The changes give the company greater operational freedom and financial flexibility.
Altman highlights impact on 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 for the next generation of AI innovation.
The deal reflects the growing 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 partnerships.
Strategic shift beyond Microsoft
The Amazon partnership demonstrates OpenAI’s effort to diversify its computing sources. “This deal 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 partner with other 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 recent quarterly report showed OpenAI lost $12 billion in the last three months.
After the announcement, Amazon shares reached 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 massive cross-investment, creating a complex network of financial ties under regulatory scrutiny. Some analysts warn this rapid spending could signal 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 caution. JP Morgan CEO Jamie Dimon warned that “the level of uncertainty should be higher in most people’s minds.”
