OpenAI has signed a $38 billion (£29 billion) agreement with Amazon to access its cloud computing infrastructure. The deal strengthens OpenAI’s computing power as it accelerates development of advanced AI systems.
OpenAI strengthens technology partnerships
In 2025, OpenAI has secured over $1 trillion in agreements with Oracle, Broadcom, AMD, and Nvidia. The Amazon deal reduces its reliance on Microsoft and provides access to Nvidia’s high-performance processors through Amazon Web Services.
The seven-year agreement follows 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 emphasizes role in AI advancement
“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 that will support the next generation of AI innovation.
The deal highlights soaring 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 move beyond Microsoft
The Amazon partnership reflects OpenAI’s push to diversify computing sources. “This deal shows OpenAI views access to computing power as critical for AI leadership,” said Kim Forrest, chief investment officer at Bokeh Capital Partners.
With Microsoft reducing its stake, OpenAI can now form partnerships 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 latest quarterly report showed the company lost $12 billion in the past three months.
Following the announcement, Amazon’s 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.”
Analysts warn of potential AI bubble
The AI sector has seen unprecedented cross-investment, creating a complex web of financial ties under regulatory scrutiny. Some analysts 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 concern. JP Morgan CEO Jamie Dimon warned that “the level of uncertainty should be higher in most people’s minds.”
