OpenAI has finalized a $38 billion (£29 billion) agreement with Amazon to access its cloud computing infrastructure. The deal boosts OpenAI’s computing capabilities as it accelerates development of advanced artificial intelligence systems.
OpenAI expands technology partnerships
In 2025, OpenAI secured more than $1 trillion in deals with Oracle, Broadcom, AMD, and Nvidia. The new agreement with Amazon reduces its reliance on Microsoft and provides access to Nvidia’s high-performance processors through Amazon Web Services.
The seven-year deal comes after a major company restructure that ended OpenAI’s non-profit status and reshaped its relationship with Microsoft. The changes provide the company with greater financial flexibility and operational independence.
Altman highlights role in AI advancement
“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 ecosystem needed to support the next wave of AI innovation.
The deal reflects soaring global demand for computing power. OpenAI, which popularized AI 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 move beyond Microsoft
The Amazon deal marks OpenAI’s effort to diversify its computing sources. “This agreement shows OpenAI views access to computing power as essential for AI leadership,” said Kim Forrest, chief investment officer at Bokeh Capital Partners.
Microsoft’s reduced stake allows OpenAI to collaborate with other major tech firms, reshaping competitive dynamics in the AI sector.
Rapid growth comes with high costs
OpenAI continues to invest heavily to maintain its lead in AI while remaining unprofitable. Microsoft’s recent quarterly report revealed the company lost $12 billion in the past three months.
Following the announcement, Amazon shares hit 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 dense network of financial ties that regulators are monitoring closely. Some experts 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 caution. JP Morgan CEO Jamie Dimon warned that “the level of uncertainty should be higher in most people’s minds.”
