OpenAI Strikes $38 Billion AWS Deal to Boost AI Capabilities – OpenAI has entered a landmark seven-year agreement with Amazon Web Services (AWS) worth $38 billion, marking its first major initiative after a recent corporate restructuring. The deal provides OpenAI with access to hundreds of thousands of Nvidia graphics processors, giving the AI pioneer greater operational and financial independence as it develops increasingly advanced AI models.
According to Reuters, the agreement highlights the surging demand for cloud computing for artificial intelligence, as companies race to create systems capable of performing tasks at or above human intelligence. OpenAI CEO Sam Altman revealed plans to invest $1.4 trillion to build 30 gigawatts of computing power—enough energy to power roughly 25 million U.S. homes.
“Scaling frontier AI requires massive, reliable compute,” Altman said. “Our partnership with AWS strengthens the broad compute ecosystem that will power this next era and bring advanced AI to everyone.”
For Amazon, the deal is a major endorsement of AWS amid investor concerns about competition from Microsoft and Google. Following the announcement, Amazon shares surged to an all-time high, adding nearly $140 billion to its market capitalization, while Microsoft’s stock briefly dipped.
OpenAI will begin using AWS immediately, with full capacity expected by the end of 2026 and potential expansions in 2027. The deployment includes hundreds of thousands of Nvidia GB200 and GB300 AI accelerators in dedicated data clusters for ChatGPT and future AI models. AWS already hosts OpenAI models on its Bedrock platform, enabling businesses to access multiple AI systems.
The deal comes shortly after OpenAI’s restructuring, which moved the organization further from its original nonprofit model and eliminated Microsoft’s right of first refusal for computing resources. This shift allows OpenAI to expand partnerships, including separate agreements with Google and a $300 billion five-year cloud deal with Oracle. OpenAI may also be preparing for a potential IPO that could value the company at $1 trillion.
While these investments reflect AI’s rapid growth, some analysts warn that surging valuations and massive spending commitments may signal bubble risks in the AI industry. Still, OpenAI’s expansion into AWS marks a strategic step toward scaling its AI capabilities and maintaining its leadership in the field.
