In brief
OpenAI has officially partnered with Amazon in a $38 billion cloud computing agreement, granting them access to crucial infrastructure and Nvidia graphics processors for AI development. This partnership follows a series of substantial deals and transformations aimed at scaling AI initiatives and highlights the increasing demand for computing power in the AI sector.
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.
The deal follows a sweeping restructure of OpenAI last week which 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 that an AI bubble may be in the offing.
Speaking to the BBC last month, Sam Altman said: Yes, the investment loans are unprecedented, but added: It's also unprecedented for companies to be growing revenue this fast.
