OpenAI has signed a $38 billion (£29 billion) deal with Amazon to use its global cloud computing infrastructure. The agreement strengthens OpenAI’s access to high-performance computing resources as it pushes forward in the race to build advanced artificial intelligence systems.
OpenAI deepens ties across the tech industry
In 2025, OpenAI has signed over $1 trillion worth of agreements with Oracle, Broadcom, AMD and Nvidia. The new partnership with Amazon reduces its reliance on Microsoft and gives it access to the latest generation of Nvidia processors through Amazon Web Services.
The seven-year deal follows a major company restructure that ended OpenAI’s non-profit status and reshaped its partnership with Microsoft. The change has given OpenAI more financial flexibility and greater control over its operations.
Altman says partnership fuels AI growth
“Scaling frontier AI requires massive, reliable compute,” said OpenAI co-founder and CEO Sam Altman. He said that teaming up with Amazon Web Services will help build a stronger computing ecosystem to bring powerful AI tools to a global audience.
The deal highlights the growing competition for computing power as AI development accelerates worldwide. OpenAI, which brought artificial intelligence into the public spotlight with ChatGPT in 2022, had long depended on Microsoft’s cloud services. Their exclusive deal ended in January, allowing OpenAI to expand its network of partners.
A strategic move beyond Microsoft
The partnership with Amazon signals OpenAI’s shift toward a more diversified approach. “This agreement shows that OpenAI believes leadership in AI depends on securing as much computing capacity as possible,” said Kim Forrest, chief investment officer at Bokeh Capital Partners.
With Microsoft reducing its control stake, OpenAI has gained freedom to form alliances with other major players, reshaping the balance of power in the global tech industry.
Huge investments bring mounting losses
OpenAI’s aggressive expansion has come at a cost. Despite its influence, the company remains unprofitable. Microsoft’s latest earnings report revealed OpenAI lost $12 billion in the last quarter alone. Still, the company continues to invest heavily to stay ahead in AI innovation.
After the announcement, Amazon’s share price reached a record high, adding $140 billion (£106 billion) to its market value. AWS chief executive Matt Garman said Amazon’s platform is “uniquely positioned to support OpenAI’s vast AI workloads.”
Experts warn of an overheated AI market
AI companies are pouring billions into partnerships and investments, creating a dense network of financial ties that regulators are closely monitoring. Some analysts warn that the pace of investment could signal a growing market bubble.
Sam Altman admitted that the investment scale is unprecedented but said OpenAI’s rapid revenue growth justifies the spending. Financial authorities such as the Bank of England and the International Monetary Fund have voiced caution, while JP Morgan chief Jamie Dimon warned that “the level of uncertainty should be higher in most people’s minds.”
