OpenAI signs $38bn cloud computing deal with Amazon to boost AI expansion

OpenAI has signed a $38 billion cloud computing deal with Amazon to strengthen its artificial intelligence infrastructure and accelerate model training using Amazon Web Services (AWS).

The seven-year partnership will provide OpenAI with access to advanced Nvidia graphics processors through Amazon’s cloud network.

The agreement comes amid a series of massive tech collaborations for OpenAI in 2025, following partnerships worth over $1 trillion combined with Oracle, Broadcom, AMD, and Nvidia. These moves underline OpenAI’s strategy to secure powerful computing resources to sustain the rapid growth of AI technologies like ChatGPT.

“Scaling frontier AI requires massive, reliable compute,” said OpenAI CEO Sam Altman. “Our partnership with AWS strengthens the broad compute ecosystem that will power this next era and bring advanced AI to everyone.”

The deal also follows OpenAI’s recent corporate restructuring, which transitioned it away from a non-profit model and adjusted its relationship with Microsoft to allow greater financial and operational independence.

Following the announcement, Amazon’s stock surged to an all-time high, adding approximately $140 billion to its market valuation — a sign of investor confidence in the growing AI infrastructure market.

Industry experts say the partnership highlights both the growing demand for cloud-based AI compute power and concerns over a potential “AI bubble.” Despite speculation, Altman remains optimistic about OpenAI’s financial trajectory.

“Yes, the investment loans are unprecedented,” he told the BBC. “But it’s also unprecedented for companies to be growing revenue this fast.”

The landmark OpenAI–Amazon deal positions both companies at the forefront of global AI innovation, signaling the next stage of competition in the race to dominate artificial intelligence infrastructure.