OpenAI signs $38 billion infrastructure deal with cloud giant AWS

By Admin

04 Nov, 2025

In a landmark move that cements its dominance in the artificial intelligence landscape, ChatGPT-maker OpenAI has signed a $38 billion multi-year infrastructure deal with Amazon Web Services (AWS). This strategic agreement marks another major step in OpenAI’s ongoing global partnership spree, which already includes collaborations with Oracle, Broadcom, AMD, and Nvidia.

Massive Computing Power for the AI Future

Under the seven-year agreement, OpenAI will gain access to an enormous pool of computing resources, including hundreds of thousands of state-of-the-art Nvidia GPUs the vital hardware powering the generative AI revolution. Additionally, the deal provides tens of millions of conventional CPUs that will support the everyday deployment of agentic AI, a new generation of intelligent, autonomous systems.

Sam Altman on Scaling Frontier AI

“Scaling frontier AI requires massive, reliable compute,” said Sam Altman, OpenAI’s co-founder and CEO. “Our partnership with AWS strengthens the broad compute ecosystem that will power this next era and bring advanced AI to everyone.”

Immediate Implementation and Long-Term Expansion

OpenAI will begin immediately utilising AWS’s computing infrastructure, with full capacity expected to be in use by the end of 2026. The agreement also allows for expansion in subsequent years as the company scales its next-generation AI models and services.

A Year of Trillion-Dollar Deals

The AWS collaboration is part of OpenAI’s unprecedented infrastructure spending spree, estimated at nearly $1 trillion in 2025 alone. The company has already announced a $300 billion deal with Oracle and a $500 billion Stargate project with Oracle and SoftBank, highlighting its aggressive approach to securing the computational power needed to stay at the cutting edge of AI development.

A Shift Toward Profit and Sustainability

This deal also marks the first major partnership since OpenAI formalised its new structure, giving the company more flexibility to operate independently of its non-profit roots and generate returns for investors. Despite projected revenues in the tens of billions this year, the cost of powering OpenAI’s advanced chatbots and large-scale AI systems remains staggering making such strategic partnerships essential for long-term sustainability.

Strengthening an Existing Collaboration

OpenAI and AWS have already shared a history of collaboration, with several of OpenAI’s open-source models being hosted on Amazon’s servers. This expanded partnership will further solidify their relationship, creating a robust foundation for global AI innovation.

As OpenAI continues to expand its AI capabilities and partnerships, the AWS deal underscores one thing clearly the race to dominate the AI infrastructure landscape is accelerating, and OpenAI is determined to stay ahead with the world’s most powerful compute ecosystem.