OpenAI Signs $38 Billion Cloud Deal with Amazon
A Landmark Partnership to Drive AI Growth
OpenAI has entered a seven-year, $38 billion agreement with Amazon to access massive computing power through Amazon Web Services (AWS). This deal marks the company’s first major move since its recent restructuring, which granted it greater financial and operational flexibility. The partnership gives OpenAI access to hundreds of thousands of Nvidia processors to train and operate its advanced AI models.
This move highlights the growing demand for computational resources across the AI sector, as firms compete to build systems approaching human-level intelligence. OpenAI plans to spend an estimated $1.4 trillion to develop 30 gigawatts of computing capacity enough to power around 25 million U.S. homes.
Strengthening Amazon’s Cloud Dominance
The agreement is a major boost for Amazon Web Services, reaffirming its position in the AI infrastructure market. Investors had expressed concern that AWS was trailing behind rivals Microsoft and Google in the AI race, but recent growth figures and this massive partnership have restored confidence.
Following the announcement, Amazon’s stock price surged to an all-time high, adding nearly $140 billion to its market value. The company’s commitment to providing OpenAI with reliable computing power demonstrates its capability to deliver at scale.
OpenAI will start using AWS immediately, with all planned capacity expected to be online by the end of 2026. There is also potential for expansion in 2027 and beyond, further deepening collaboration between the two companies.
Expanding Compute Capabilities Across Multiple Partners
Amazon will deploy hundreds of thousands of AI chips, including Nvidia’s GB200 and GB300 accelerators, within specialized data clusters designed to support OpenAI’s models and ChatGPT operations. The deal follows OpenAI’s previous partnerships with other tech giants to diversify its computing sources.
The company has also made large-scale commitments with Google and Oracle to secure additional cloud capacity, ensuring no single dependency limits its progress. Moreover, OpenAI recently agreed to a $250 billion purchase of Microsoft’s Azure cloud services as part of its new operational framework.
Although OpenAI’s annualized revenue is expected to reach around $20 billion by year-end, the company’s extensive spending plans have raised questions about sustainability. Nonetheless, its aggressive investment in computing power underscores a clear goal—to accelerate the next phase of artificial intelligence innovation.
