In brief
OpenAI has signed a landmark $38 billion contract with Amazon for cloud computing resources, making use of Amazon Web Services (AWS). This deal is part of a broader strategy for OpenAI, which has also secured other major agreements totaling over $1 trillion with various tech giants. OpenAI aims to leverage Amazon's infrastructure to enhance its AI model training, amidst growing demands for computing power in AI technology. The partnership has already led to a notable rise in Amazon's market valuation.
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.
This follows a sweeping restructure of OpenAI last week that 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 about an AI bubble emerging.
Speaking to the BBC last month, Sam Altman commented, Yes, the investment loans are unprecedented, but added, It's also unprecedented for companies to be growing revenue this fast.
