OpenAI has signed a $38 billion (£29 billion) agreement with Amazon to use its cloud computing infrastructure. The deal boosts OpenAI’s computing capacity as it accelerates the development of advanced artificial intelligence systems.
OpenAI expands its technology alliances
In 2025, OpenAI has finalized over $1 trillion in partnerships with Oracle, Broadcom, AMD, and Nvidia. The Amazon deal reduces its dependence on Microsoft and provides access to Nvidia’s high-performance processors through Amazon Web Services.
The seven-year agreement follows a major restructure that ended OpenAI’s non-profit status and redefined its relationship with Microsoft. The changes give the company more operational independence and financial flexibility.
Altman says partnership drives AI growth
“Scaling frontier AI requires massive, reliable compute,” said OpenAI co-founder and CEO Sam Altman. He added that the partnership with Amazon Web Services strengthens the computing ecosystem that will support the next generation of AI innovation.
The deal reflects soaring global demand for computing power. OpenAI, which brought AI to mainstream audiences with ChatGPT in 2022, had long relied on Microsoft’s cloud services. Their exclusive arrangement ended in January, allowing OpenAI to diversify its partnerships.
Strategic move away from Microsoft
The Amazon agreement demonstrates OpenAI’s effort to diversify its computing sources. “This deal shows OpenAI sees access to computing power as essential for AI leadership,” said Kim Forrest, chief investment officer at Bokeh Capital Partners.
Microsoft’s reduced stake allows OpenAI to collaborate with other tech competitors, reshaping the balance of power in the AI industry.
Expansion comes with rising costs
OpenAI continues to invest heavily to stay ahead in AI while remaining unprofitable. Microsoft’s latest quarterly report showed the company lost $12 billion in the past quarter alone.
Following 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.”
Experts warn of AI investment risks
The rapid flow of investment among AI companies has created a dense web of financial ties under regulatory scrutiny. Some analysts warn this may signal a potential market bubble.
Sam Altman acknowledged the unprecedented scale of funding but argued OpenAI’s rapid revenue growth justifies it. Financial authorities, including the Bank of England and the International Monetary Fund, have expressed concern. JP Morgan CEO Jamie Dimon warned that “the level of uncertainty should be higher in most people’s minds.”
