OpenAI has signed a $38 billion (£29 billion) deal with Amazon to use its powerful cloud computing network. The move gives the ChatGPT developer greater access to essential computing resources and deepens its influence in the artificial intelligence industry.
Expanding alliances beyond Microsoft
Throughout 2025, OpenAI has secured more than $1 trillion in deals with Oracle, Broadcom, AMD and Nvidia. The new partnership with Amazon marks a clear step away from Microsoft’s dominance and broadens OpenAI’s access to cutting-edge technology.
The seven-year agreement allows OpenAI to use Nvidia’s high-performance processors through Amazon Web Services. It follows a sweeping internal overhaul that ended the company’s non-profit structure and reshaped its relationship with Microsoft, giving OpenAI more financial and strategic independence.
Altman says deal strengthens foundation for next AI era
“Scaling frontier AI requires massive, reliable compute,” said OpenAI co-founder and CEO Sam Altman. He explained that the partnership with Amazon Web Services builds a stronger global computing ecosystem that will support the next generation of artificial intelligence.
The deal reflects the intense race for computing power as demand for AI continues to surge. OpenAI, which introduced AI to mainstream audiences with ChatGPT in 2022, had relied on Microsoft’s cloud systems for years. Their exclusive partnership ended in January, opening the door for new alliances like this one.
A calculated shift in power and strategy
This deal signals OpenAI’s strategic effort to diversify its computing supply and limit dependence on a single partner. “OpenAI sees computing capacity as the new currency of innovation,” said Kim Forrest, chief investment officer at Bokeh Capital Partners.
With Microsoft’s influence now reduced, OpenAI can partner freely with rivals and competitors, reshaping power dynamics across the global tech landscape.
Huge investment, heavy costs
Despite its rapid rise, OpenAI remains unprofitable. Microsoft’s recent financial report revealed that OpenAI lost $12 billion in the last quarter alone. The company continues to spend heavily to stay at the forefront of AI innovation.
After the announcement, Amazon’s shares surged to an all-time high, adding $140 billion (£106 billion) to its market value. AWS chief executive Matt Garman said his division is “uniquely positioned to support OpenAI’s vast AI workloads.”
Investors warn of possible AI bubble
The AI sector has become a complex web of cross-investments as leading firms pour money into one another. Some analysts fear this could signal the beginning of an AI investment bubble.
Sam Altman acknowledged that recent investment levels are unprecedented but insisted that OpenAI’s rapid revenue growth supports them. Financial leaders, including those at the Bank of England, the International Monetary Fund and JP Morgan, have urged caution. JP Morgan’s CEO Jamie Dimon recently said that “the level of uncertainty should be higher in most people’s minds.”
