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 advances the development of next-generation artificial intelligence systems.
OpenAI expands its technology alliances
In 2025, OpenAI has forged over $1 trillion in partnerships 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 follows a major internal restructure that ended OpenAI’s non-profit status and redefined its relationship with Microsoft. The changes give OpenAI greater financial freedom and operational independence.
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 expands the computing ecosystem that will drive the next wave of AI innovation.
The deal underlines the soaring global demand for computing power. OpenAI, which brought AI to mainstream audiences 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.
A strategic shift from Microsoft
The partnership with Amazon signals OpenAI’s move toward a more diversified computing strategy. “This agreement shows OpenAI sees access to computing power as key to maintaining leadership in AI,” said Kim Forrest, chief investment officer at Bokeh Capital Partners.
With Microsoft reducing its stake, OpenAI can pursue collaborations with competitors, reshaping the global technology landscape.
Rapid growth comes with rising costs
Despite its influence, OpenAI remains unprofitable, investing heavily to stay ahead in AI development. Microsoft’s recent quarterly report revealed OpenAI lost $12 billion in the last three months.
Following the announcement, Amazon 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 investment bubble
The AI sector has seen unprecedented cross-investment among leading firms, creating a complex web that regulators are monitoring. Some analysts warn this level of spending could indicate a market bubble.
Altman acknowledged the scale of investment is historic but said OpenAI’s rapid revenue growth justifies it. Financial 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.”
