Prime Highlights
- OpenAIhas signed a $38 billion cloud computing agreement with Amazon Web Services (AWS), one of the largest technology infrastructure deals ever made.
- The partnership marks OpenAI’s strategic move to diversify its cloud providers, expanding beyond Microsoft to meet soaring AI computing demands.
Key Facts
- Under the deal, OpenAI will purchase AWS capacity over the next seven yearsand deploy all purchased infrastructure by the end of 2026.
- The agreement aligns with OpenAI’s broader $1 trillion investment planin computing resources over the next decade, including collaborations with Oracle, SoftBank, and the UAE.
Background
OpenAI has signed a massive $38 billion cloud computing deal with Amazon, marking one of the largest technology infrastructure agreements to date. The ChatGPT-maker said on Monday that it will purchase Amazon Web Services (AWS) capacity over the next seven years to power its growing artificial intelligence workloads.
Under the agreement, OpenAI will immediately start using AWS compute resources, with plans to deploy all purchased capacity before the end of 2026. The company also retains the option to expand its use of Amazon’s infrastructure beyond 2027, as it scales new AI models and applications.
The deal follows OpenAI’s recent corporate restructuring, which now allows it to secure computing partnerships outside of Microsoft, its long-time backer and primary cloud provider. The move shows that OpenAI is working to expand its infrastructure as it rushes to meet the rising demand for advanced AI.
OpenAI says that the deal with Amazon is consistent with its overall strategy to invest over $1 trillion in computing resources during the next ten years. The company is already building out new data centers in collaboration with Oracle, SoftBank, and the United Arab Emirates, while also securing supply agreements with major chipmakers including Nvidia, AMD, and Broadcom.
Analysts say OpenAI is investing aggressively because AI companies are competing hard for cloud and chip capacity. However, some experts warn that spending so much money could signal an AI investment bubble, with companies putting billions into technologies that may not pay off in the long run.
The new deal strengthens Amazon’s role in AI infrastructure, even as cloud providers compete to host the next generation of large AI systems.