OpenAI has entered a $38 billion (£29 billion) agreement with Amazon to tap into its cloud computing infrastructure. The deal strengthens OpenAI’s access to the computing power required to train its next generation of artificial intelligence systems.
Expanding OpenAI’s global tech network
In 2025, OpenAI has already signed over $1 trillion in partnerships with Oracle, Broadcom, AMD and Nvidia. The new alliance with Amazon reduces its long-standing dependence on Microsoft and expands its access to critical chip and cloud technologies.
The seven-year partnership gives OpenAI access to Nvidia’s powerful processors through Amazon Web Services. It follows a major internal transformation that shifted the company from its non-profit origins and redefined its ties with Microsoft, giving it more freedom to operate and finance its own projects.
Sam Altman says deal strengthens AI infrastructure
“Scaling frontier AI requires massive, reliable compute,” said OpenAI co-founder and CEO Sam Altman. He explained that collaborating with Amazon Web Services expands the computing ecosystem needed to drive the next stage of artificial intelligence development.
The partnership highlights the growing race among AI firms to secure cloud capacity as global demand for computing power surges. OpenAI, which made AI mainstream with the release of ChatGPT in 2022, had previously relied on Microsoft’s infrastructure under an exclusive deal that ended in January.
Shifting strategy away from Microsoft
The Amazon partnership signals OpenAI’s deliberate move to diversify its computing sources and reduce dependence on Microsoft’s systems. “This deal shows that OpenAI believes leadership in AI depends on securing the most computing power possible,” said Kim Forrest, chief investment officer at Bokeh Capital Partners.
With Microsoft taking a smaller stake in OpenAI, new partnerships with its competitors have become easier to form, reshaping alliances across the tech industry.
Investment surge comes with rising costs
OpenAI’s expansion has come at a steep price. Despite its prominence, the company remains unprofitable, losing $12 billion in the last quarter according to Microsoft’s most recent earnings report. Still, OpenAI continues to invest heavily to maintain its lead in the fast-moving AI race.
Following the announcement, Amazon’s share price hit a record high, adding $140 billion (£106 billion) to its valuation. AWS chief executive Matt Garman said Amazon’s cloud division is “uniquely positioned to support OpenAI’s vast AI workloads.”
Analysts warn of possible AI bubble
The rapid wave of AI investment has created a web of cross-company funding that regulators are now monitoring closely. Some experts warn that this level of spending could point to an emerging investment bubble in the sector.
Sam Altman has acknowledged that the investment scale is unprecedented but argued that OpenAI’s rapid revenue growth justifies it. Financial authorities such as the Bank of England and the International Monetary Fund have expressed concern, while JP Morgan chief Jamie Dimon said that “the level of uncertainty should be higher in most people’s minds.”
