OpenAI and Amazon Forge $38 Billion Cloud Deal

Tue Nov 04 2025 00:40:19 GMT+0200 (Eastern European Standard Time)

OpenAI has secured a significant $38 billion contract with Amazon, enhancing its ability to scale AI technology through cloud computing resources.

OpenAI has entered a groundbreaking seven-year agreement worth $38 billion with Amazon to utilize its cloud computing services. This partnership, which includes access to Nvidia graphics processors, follows a trend of significant collaborations, with OpenAI recently signing major deals exceeding $1 trillion with other tech giants. The deal highlights the soaring demand for computational power driven by the AI sector.

OpenAI has signed a $38bn (£29bn) contract with Amazon to access its cloud computing infrastructure as it continues its run of major partnerships.

In 2025, the ChatGPT maker has signed deals worth more than $1tn with Oracle, Broadcom, AMD and chip-making giant Nvidia.

As part of the seven-year agreement, OpenAI will gain access to Nvidia graphics processors to train its artificial intelligence models.

The deal follows a sweeping restructure of OpenAI last week, which saw it convert away from being a non-profit and changed its relationship with Microsoft to give OpenAI more operational and financial freedom.

Scaling frontier AI requires massive, reliable compute, said OpenAI co-founder and CEO Sam Altman.

Our partnership with AWS [Amazon Web Services] strengthens the broad compute ecosystem that will power this next era and bring advanced AI to everyone.

The deal reflects the massive demand for computer power coming from the growing interest in AI.

Following the announcement of the deal on Monday, Amazon shares hit an all-time high, adding $140bn (£106bn) to its valuation.

In response to OpenAI's deal spree, there has been some speculation that an AI bubble may be in the offing.

Speaking to the BBC last month, Sam Altman said: Yes, the investment loans are unprecedented, but added: It's also unprecedented for companies to be growing revenue this fast.