OpenAI has signed a $38 billion deal with Amazon Web Services (AWS) to access the computing power needed to drive its AI models, marking a pivotal move in its growth and the AI race.
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| OpenAI has secured a historic $38 billion deal with AWS to access critical cloud infrastructure for AI development. Learn about the implications of this partnership for the AI industry. Image: CH |
San Francisco, United States – November 4, 2025:
In a landmark move that could reshape the future of artificial intelligence, OpenAI has entered into a transformative seven-year, $38 billion agreement with Amazon Web Services (AWS). The deal, announced on Monday, will grant OpenAI unprecedented access to the computational power required to scale its AI models, including those that power its popular ChatGPT platform.
This partnership marks a significant milestone for OpenAI as the company seeks to expand its capabilities and solidify its position as a leader in the rapidly evolving AI space. By securing access to hundreds of thousands of Nvidia GPUs—critical components for training large-scale AI models—OpenAI will be able to accelerate its development and deployment of next-generation AI technologies.
At the heart of this deal is OpenAI’s push to meet the growing demands for computational resources, which are essential for running the advanced AI systems needed to surpass human intelligence. OpenAI’s CEO, Sam Altman, has outlined a bold vision for the company’s future, with a target of investing $1.4 trillion over the next decade to build 30 gigawatts of computing power—enough to supply electricity to 25 million homes in the U.S. This monumental effort is central to OpenAI’s mission of leading the AI revolution.
“This partnership with AWS strengthens the broad compute ecosystem necessary to support this next era of AI,” said Altman. The agreement is pivotal as OpenAI aims to increase its computing capacity significantly, a challenge that requires both vast infrastructure and substantial financial investment.
While the deal primarily benefits OpenAI, it also represents a critical win for Amazon’s cloud division, AWS, which has faced increasing competition from Microsoft and Google in the AI space. AWS has been under pressure in recent years as rivals ramp up their AI investments, but this deal reaffirms AWS's leadership position.
The announcement of the partnership led to a surge in Amazon’s stock price, hitting an all-time high on Monday, adding nearly $140 billion to its market value. Industry analysts, such as Paolo Pescatore from PP Foresight, described the deal as a “clear endorsement” of AWS's computing capabilities, cementing its status as a key enabler of AI growth.
“Having OpenAI as a major client is a significant validation of AWS’s ability to scale AI operations,” Pescatore remarked.
The agreement with AWS also follows a major restructuring of OpenAI, which recently moved away from its non-profit model. The shift gives OpenAI greater freedom to pursue aggressive growth and seek out new commercial partnerships. Notably, the restructuring eliminates Microsoft’s preferential rights to supply cloud services, signaling a more diversified approach to cloud partnerships. OpenAI has already secured a separate deal with Oracle, worth $300 billion over five years, to help meet its compute needs.
These moves suggest that OpenAI is positioning itself for an eventual Initial Public Offering (IPO), with estimates suggesting the company could be valued at up to $1 trillion. However, this expansion comes with significant financial risks. OpenAI faces growing scrutiny as it battles mounting losses and massive capital outlays needed to build out its AI infrastructure.
Despite the massive spending commitments, OpenAI’s revenue outlook is strong, with the company projecting an annualized revenue of $20 billion by the end of this year. However, the financial pressure from its extensive cloud service contracts and other expenditures has led some analysts to question whether OpenAI can maintain this rapid growth trajectory.
Altman has set an ambitious goal of adding 1 gigawatt of computing capacity every week, a daunting target considering that each gigawatt of computing power requires over $40 billion in capital investment. The financial sustainability of such goals remains a key concern.
OpenAI’s $38 billion deal with AWS highlights the insatiable demand for computational power at the heart of the AI boom. The partnership will fuel OpenAI’s ambition to lead the next era of artificial intelligence, but it also underscores the significant financial and operational challenges that come with scaling such sophisticated technology.
As OpenAI ramps up its AI infrastructure, the future of artificial intelligence looks set to be shaped by high-stakes partnerships like this one. While challenges remain, OpenAI’s position as a leader in the field seems more secure than ever as it builds the technological foundation for the next generation of AI-driven innovation.