OpenAI has signed a $38 billion (£29 billion) agreement with Amazon to access its cloud computing infrastructure. The deal strengthens OpenAI’s computing capabilities as it accelerates the development of next-generation artificial intelligence systems.
OpenAI expands global technology partnerships
In 2025, OpenAI secured more than $1 trillion in deals with Oracle, Broadcom, AMD, and Nvidia. The Amazon partnership reduces its dependence on Microsoft and provides access to Nvidia’s high-performance processors via Amazon Web Services.
The seven-year agreement follows a major internal restructuring that ended OpenAI’s non-profit status and reshaped its relationship with Microsoft. The changes give the company greater operational independence and financial flexibility.
Altman highlights impact on AI innovation
“Scaling frontier AI requires massive, reliable compute,” said OpenAI co-founder and CEO Sam Altman. He added that the partnership with Amazon Web Services expands the computing ecosystem needed to support the next generation of AI.
The deal reflects the surging global demand for computing power. OpenAI, which made AI mainstream with ChatGPT in 2022, had relied heavily on Microsoft’s cloud services. Their exclusive agreement ended in January, allowing OpenAI to diversify its technology partners.
Strategic shift away from Microsoft
The Amazon partnership demonstrates OpenAI’s move to diversify its computing resources. “This agreement shows that OpenAI sees access to computing power as essential to AI leadership,” said Kim Forrest, chief investment officer at Bokeh Capital Partners.
Microsoft’s reduced role allows OpenAI to pursue partnerships with competitors, reshaping the balance of power in the global AI industry.
Rising costs accompany rapid growth
OpenAI continues to invest heavily to maintain its lead in AI, remaining unprofitable despite its market influence. Microsoft’s latest quarterly report revealed OpenAI lost $12 billion in the past three months.
After 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 caution on AI investment surge
The AI sector has seen unprecedented cross-investment, creating a complex web of financial ties that regulators are monitoring. Some experts warn this rapid spending could indicate a potential investment bubble.
Sam Altman acknowledged the scale of investments is historic but said OpenAI’s rapid revenue growth justifies it. The Bank of England, the International Monetary Fund, and JP Morgan CEO Jamie Dimon have all cautioned that “the level of uncertainty should be higher in most people’s minds.”
