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 advances the development of next-generation artificial intelligence systems.
OpenAI broadens technology partnerships
In 2025, OpenAI has completed more than $1 trillion in deals with Oracle, Broadcom, AMD, and Nvidia. The Amazon agreement reduces 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 the company greater operational freedom and financial flexibility.
Altman calls deal vital for AI growth
“Scaling frontier AI requires massive, reliable compute,” said OpenAI co-founder and CEO Sam Altman. He explained that the partnership with Amazon Web Services strengthens the computing ecosystem needed to drive the next wave of AI innovation.
The agreement highlights 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 partnerships.
Strategic shift away from Microsoft
The Amazon partnership reflects OpenAI’s push to diversify computing sources. “This agreement shows that OpenAI views access to computing power as critical for AI leadership,” said Kim Forrest, chief investment officer at Bokeh Capital Partners.
Microsoft’s reduced stake allows OpenAI to form partnerships with other major tech firms, reshaping competitive dynamics in the AI sector.
Growth comes with rising costs
OpenAI continues to spend heavily to maintain its lead in AI, remaining unprofitable despite its market influence. Microsoft’s recent quarterly report showed OpenAI lost $12 billion in the last three months.
After the announcement, Amazon shares surged to a record high, adding $140 billion (£106 billion) to its valuation. 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 massive cross-investment, creating a complex network of financial ties that regulators are monitoring closely. Some experts warn this spending could signal a potential market bubble.
Sam Altman acknowledged the historic scale of investment 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.”
