OpenAI inks $38b infrastructure deal with cloud computing giant AWS

In a bold step to enhance its artificial intelligence capabilities, OpenAI, the creator of ChatGPT, has unveiled plans to immediately integrate Amazon Web Services (AWS) into its operations.
The strategy aims for complete utilisation of this computing capacity by the close of 2026, with prospects for future expansion as the AI powerhouse ramps up its series of strategic partnerships that also feature collaborations with Oracle, Broadcom, AMD, and Nvidia, a titan of chip manufacturing.
The announcement comes on the heels of the companies’ $38 billion deal, officially signed on Monday, November 3. The comprehensive seven-year agreement empowers OpenAI to tap into AWS’s vast cloud infrastructure, which includes Amazon EC2 UltraServers powered by Nvidia graphics processing units (GPUs)—a critical technology driving the revolution in generative artificial intelligence to bolster its upcoming AI models.
The agreement signifies a pivotal change for OpenAI, allowing them to broaden their computing options beyond their current alliance with Microsoft Azure. As a reflection of this development, Amazon’s stock experienced an uptick, climbing around 4.5 percent. It highlights the increasing need for cloud infrastructure within the AI landscape and cements AWS’s role as a formidable player in the sector.
In a statement, OpenAI’s CEO, Sam Altman, noted that the deal is part of OpenAI’s broader strategy to secure long-term computing capacity and prepare for a potential initial public offering (IPO).
“Scaling frontier AI requires massive, reliable compute. Our partnership with AWS strengthens the broad compute ecosystem that will power this next era and bring advanced AI to everyone,” he said.
“AWS is uniquely positioned to support OpenAI’s vast AI workloads,” said Matt Garman, CEO of AWS in a separate statement.
OpenAI, which brought AI into the consumer mainstream with the launch of ChatGPT in 2022, had been reliant on Microsoft for computing power for years. The two firms had an exclusive cloud agreement until January this year, when their relationship loosened.
Checks revealed that the ChatGPT maker in 2025 has signed deals worth more than $1trillion, with notable contracts including a $300 billion deal with Oracle, a $500 billion Stargate project in conjunction with Oracle and SoftBank; Broadcom, AMD and chip-making giant Nvidia.
This monumental infrastructure investment comes amidst expectations of revenues in the tens of billions by 2025—a striking figure for a startup; however, it remains significantly shy of the costs required to sustain the computing power needed to operate OpenAI’s advanced chatbots.
The deal marks the first major agreement since OpenAI formalised its new structure, which affords the company greater flexibility to depart from its non-profit foundations and generate profits for its investors.