Summary:
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OpenAI partners with Amazon Web Services for $38 billion deal, expanding computing power for AI models.
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Amazon aims to boost AWS growth amid competition, investing in data centers and AI startups.
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OpenAI diversifies with the deal, shifting from exclusive Azure relationship to tapping into Amazon’s resources.
OpenAI has inked a $38 billion, seven-year deal with Amazon Web Services, marking the ChatGPT maker’s first major partnership with the retail and cloud giant. The deal, unveiled Monday, underscores OpenAI’s rapidly expanding demand for computing power—and Amazon’s need to catch up in the AI cloud race.
Under the agreement, OpenAI will tap into Amazon’s data centers stocked with Nvidia GPUs and custom CPUs to train its next generation of AI models and process ChatGPT queries. Amazon said the capacity will be fully available by the end of next year.
GPT-6 will be renamed GPT-6-7, you’re welcome
— Sam Altman (@sama) October 30, 2025
For Amazon, the partnership is an aggressive play to boost AWS’s growth amid rising competition from Microsoft Azure and Google Cloud, which have benefited from the AI boom. The company recently posted its fastest cloud revenue growth since 2022 and opened an $11 billion data-center campus in Indiana, now hosting OpenAI rival Anthropic.
The deal may seem small next to OpenAI’s $300 billion pact with Oracle or its $250 billion commitment to Microsoft, but it signals a diversification strategy by the AI firm as it ends its exclusive Azure relationship. The company has also signed smaller agreements with Google Cloud.
OpenAI CEO Sam Altman has been open about the company’s compute crunch. He’s said that expanding cloud capacity is key to rolling out “agentic AI”—autonomous systems that handle tasks without human prompts.
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Amazon, meanwhile, is betting big on AI startups as a long-term growth engine. It $8 billion investment in Anthropic and the rise of its Trainium chip underscore its ambition to stay central to the AI supply chain—even as rivals like Google lure customers with proprietary hardware.
With nearly $600 billion in total cloud commitments across four tech giants, OpenAI’s future hinges as much on data-center access as on AI breakthroughs. The company is projected to hit $13 billion in revenue this year, a fraction of what it’s spending on compute.
