OpenAI has entered a $38 billion (£29 billion) agreement with Amazon to use its cloud computing network. The move boosts the ChatGPT creator’s access to computing power and marks another step in its rapid global expansion.
OpenAI builds vast network of technology partners
In 2025, OpenAI has formed over $1 trillion in partnerships with Oracle, Broadcom, AMD and Nvidia. The new alliance with Amazon reduces its dependence on Microsoft and deepens its access to advanced hardware.
The seven-year deal gives OpenAI use of Nvidia’s high-performance processors through Amazon Web Services. It follows a major internal restructure last week that ended OpenAI’s non-profit status and loosened Microsoft’s influence, granting the company more independence.
Altman calls deal vital for next AI breakthrough
“Scaling frontier AI requires massive, reliable compute,” said OpenAI co-founder and CEO Sam Altman. He explained that working with Amazon Web Services will help create a stronger computing foundation for the next wave of AI innovation.
The partnership highlights the soaring demand for computing power as global interest in artificial intelligence continues to grow. OpenAI, which made AI mainstream with ChatGPT in 2022, had long relied on Microsoft for cloud services. Their exclusive agreement ended in January, allowing new collaborations to form.
Strategic shift away from Microsoft’s shadow
The deal with Amazon signals OpenAI’s intention to diversify its computing resources and reduce Microsoft’s control. “This partnership shows that OpenAI views computing capacity as the key to leadership in AI,” said Kim Forrest, chief investment officer at Bokeh Capital Partners.
Microsoft’s smaller stake in OpenAI has opened the door for collaboration with its competitors, changing the dynamics of the tech industry.
OpenAI’s ambition comes with rising losses
Despite its dominance in AI development, OpenAI continues to operate at a loss. Microsoft’s recent quarterly report revealed OpenAI lost $12 billion in the last quarter alone. The company continues to invest heavily to secure its position at the forefront of AI.
After the announcement, Amazon’s shares surged to a record high, adding $140 billion (£106 billion) to its valuation. AWS chief executive Matt Garman said his division is “uniquely positioned to support OpenAI’s vast AI workloads.”
Experts warn of growing risks in AI boom
As AI companies pour money into each other, regulators are watching the sector’s rapid growth closely. Some financial experts fear the industry is heading toward an investment bubble.
Sam Altman has admitted that the levels of funding are unprecedented but insists that OpenAI’s explosive revenue growth justifies the expansion. Financial institutions such as the Bank of England and the International Monetary Fund have raised concerns. JP Morgan’s chief Jamie Dimon also warned that “uncertainty should be higher in most people’s minds.”
