OpenAI Signs $38 Billion Deal With Amazon

OpenAI Signed a multi-year deal with Amazon to buy $38 billion worth of AWS cloud infrastructure to train its models and serve its users.

The deal is another sign of AI becoming an industry Gradually engageOpenAI is now at the center of major partnerships with industry players including Google, Oracle, Nvidia, and AMD.

The AWS deal is also notable because OpenAI gained prominence in part through its partnership with Microsoft—Amazon’s biggest cloud rival. Amazon is a major backer of Anthropic, one of OpenAI’s main competitors. Amazon and Microsoft are currently developing their own AI models to compete with startups like OpenAI.

Many now worry that the rush to build more infrastructure—and the unusual financial deals behind the deals—are signs of an AI bubble. Between 2026 and 2027, companies are projected to spend more than $500 billion on AI infrastructure in the US, according to Reporting by financial journalist Derek Thompson.

Patrick Moorhead, principal analyst at Moore Insights & Strategy, said he believes big tech companies and AI startups have a real need for more capabilities and must look for ways to turn computing into profit. He added that the new deal shows that Amazon is not so far behind in AI. “A lot of people said they were down and out, but they put over $38 billion on the board, right, which is pretty exceptional,” he says.

Moorhead added that OpenAI’s strategy is to limit reliance on any one cloud provider. “OpenAI is being deployed with almost everyone at the moment,” he says.

Amazon said in its announcement that it is building custom infrastructure for OpenAI. The setup includes two types of Nvidia chips, GB200s and GB300s, which Amazon says will be used for both training and estimation. The company also said the deal will give OpenAI “access to hundreds of thousands of state-of-the-art NVIDIA GPUs, with the ability to scale to hundreds of millions of CPUs to rapidly scale agent workloads.”

OpenAI and other AI players believe that agentic AI will become increasingly important as more users adopt AI tools to navigate the web.

“Scaling frontier AI requires massive, reliable computation,” OpenAI co-founder and CEO Sam Altman said in the announcement.

OpenAI said Last week it will receive a new one Structure for profit That should allow it to raise more money. Although the company is still controlled by a non-profit, it has become a public-benefit corporation for its profits.