OpenAI has signed a $38 billion (£29 billion) agreement with Amazon to use its powerful cloud computing infrastructure. The deal strengthens the ChatGPT maker’s access to the resources needed to train advanced artificial intelligence systems and marks another major step in its global expansion.
OpenAI builds trillion-dollar web of tech partners
In 2025, OpenAI secured partnerships worth more than $1 trillion with Oracle, Broadcom, AMD and Nvidia. The new agreement with Amazon reduces its dependence on Microsoft and broadens its access to cutting-edge chips and cloud technology.
The seven-year contract gives OpenAI access to Nvidia’s high-performance processors through Amazon Web Services. This follows a major corporate restructuring last week that transformed OpenAI’s non-profit status and loosened its long-standing ties with Microsoft, granting the company greater financial freedom.
Sam Altman says deal powers the next era of AI
“Scaling frontier AI requires massive, reliable compute,” said OpenAI co-founder and CEO Sam Altman. He added that the partnership with Amazon Web Services will expand the compute ecosystem needed to bring advanced AI to people around the world.
The agreement reflects the intensifying global demand for computing capacity as AI innovation accelerates. OpenAI, which popularised consumer AI with ChatGPT in 2022, had relied heavily on Microsoft’s cloud infrastructure for years. Their exclusive arrangement ended in January, giving OpenAI room to diversify its partnerships.
Strategic move away from Microsoft dominance
The deal with Amazon marks OpenAI’s most significant shift away from Microsoft so far. “This partnership shows that OpenAI sees its path to leadership in gaining as much computing power as possible,” said Kim Forrest, chief investment officer at Bokeh Capital Partners.
Analysts note that Microsoft’s reduced control has allowed OpenAI to engage more freely with competitors of its former primary backer. This diversification could reshape the competitive landscape of the AI industry.
OpenAI’s growth comes with soaring costs
Despite rapid expansion, OpenAI remains unprofitable as it pours resources into AI development. Microsoft’s most recent financial results revealed that OpenAI lost $12 billion in the last quarter alone. The company continues to invest heavily to stay ahead in the technology race.
After news of the deal broke, Amazon’s share price hit a record high, adding $140 billion (£106 billion) to its market value. AWS chief executive Matt Garman said the company is “uniquely positioned to support OpenAI’s vast AI workloads.”
Fears rise over a potential AI investment bubble
As AI companies pour billions into each other, the growing web of investments has attracted regulatory scrutiny. Some analysts warn that an AI bubble may be forming amid unprecedented funding and hype.
Sam Altman acknowledged that the current investment wave is extraordinary but said the company’s rapid revenue growth justifies it. Meanwhile, financial institutions such as the Bank of England and the International Monetary Fund have voiced concerns. JP Morgan chief Jamie Dimon also cautioned that “the level of uncertainty should be higher in most people’s minds.”
