OpenAI, the firm behind ChatGPT, has secured a $38 billion cloud computing contract with Amazon, expanding its access to critical infrastructure for artificial intelligence development.
This deal is part of OpenAI’s wider effort in 2025 to diversify its computing partnerships beyond Microsoft, with agreements worth over $1 trillion collectively signed this year with companies like Oracle, Broadcom, AMD, and Nvidia.
The seven-year contract provides OpenAI access to Nvidia GPUs, vital for training advanced AI models. This follows OpenAI’s recent shift from a non-profit to a more flexible organisation, reducing Microsoft’s operational control and increasing OpenAI’s financial independence.
“Scaling frontier AI requires massive, reliable compute,” adding, “Our partnership with AWS strengthens the broad compute ecosystem that will power this next era and bring advanced AI to everyone,” said Sam Altman, OpenAI’s co-founder and CEO.
Until January, Microsoft had exclusive cloud rights with OpenAI, but this deal with AWS marks a move to expand its cloud infrastructure. Kim Forrest of Bokeh Capital Partners observed, “OpenAI considers that its path to leadership is paved with getting access to as much computing power as it can get its hands on.”
Despite its swift growth, OpenAI remains unprofitable, with Microsoft revealing a $12 billion loss last quarter. Following the announcement, Amazon’s shares hit record levels, adding approximately $140 billion in value.
“AWS is uniquely positioned to support OpenAI’s vast AI workloads,” AWS CEO Matt Garman said.
The AI industry’s quick expansion has sparked concerns about a potential AI bubble, with regulators like the Bank of England and the IMF urging caution.