OpenAI has signed a multi-year agreement with Amazon to purchase $38 billion worth of Amazon Web Services (AWS) cloud infrastructure. The deal will provide OpenAI with the computing power needed to train its artificial intelligence models and support its growing user base.
The agreement marks another major partnership for OpenAI, which already collaborates with companies including Microsoft, Google, Oracle, Nvidia, and AMD. It also highlights the increasingly competitive nature of the AI industry, with Amazon and Microsoft developing their own AI models to rival startups like OpenAI and Anthropic.
Amazon said it will build custom infrastructure for OpenAI, using two types of Nvidia chips, GB200s and GB300s. The setup will include hundreds of thousands of state-of-the-art GPUs and the ability to scale to tens of millions of CPUs to handle demanding AI workloads.
Experts say the deal demonstrates Amazon’s commitment to AI and reflects the enormous demand for cloud computing in the sector. Patrick Moorhead, chief analyst at Moor Insights & Strategy, said: “Many people said Amazon was down and out, but they just put $38 billion on the board, which is exceptional.” He added that OpenAI is spreading its operations across multiple cloud providers to reduce dependency on any single company.
OpenAI CEO Sam Altman said scaling AI requires “massive, reliable compute.” The company recently announced a new for-profit structure, allowing it to raise capital while remaining controlled by a nonprofit parent.
Industry analysts warn that the scale of deals like this could be a sign of an AI infrastructure bubble, with US companies projected to spend more than $500 billion on AI infrastructure between 2026 and 2027.
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