Artificial Intelligence

OpenAI Signs $38B Amazon Web Services Deal

Published NOV 4 2025

Story

Above: A photo illustration of the Amazon logo displayed on a smartphone with the OpenAI logo in the background. Image credit: CFOTO/Future Publishing/Getty Images

The Facts

OpenAI signed a $38 billion seven-year deal with Amazon Web Services (AWS) on Monday, allowing the artificial intelligence company to utilize AWS' cloud infrastructure for its AI workloads.
Al Jazeera
The Times (UK)
AWS will provide OpenAI with access to its EC2 UltraServers and its hundreds of thousands of NVIDIA GPUs, which can be expanded to tens of millions of CPUs to accommodate the organization's "advanced generative AI workloads."
Openai
The servers will use clusters of NVIDIA GB200 and GB300, which a joint OpenAI-AWS press release claimed offered "low-latency performance across interconnected systems" for "optimal performance" and workload flexibility.
Openai
Amazon
With the agreement taking immediate effect, OpenAI estimated it will deploy all its current AWS capacity by the end of 2026. Further room to expand its AWS operations will become available in 2027 and beyond.
Openai
The partnership reduces OpenAI's dependence on Microsoft for computing power, following the end of their exclusive cloud agreement in January. OpenAI's restructuring agreement last week also removed Microsoft's first right of refusal on new cloud contracts.
New York Post
CNBC
Openai
In response to the agreement, which followed Amazon’s announcement that it will lay off 14,000 staff, the company’s share price surged by more than 4%.
Amazon
Google Finance
BBC News
The Times (UK)

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The Spin

Techno-optimist narrative

The $38 billion AWS partnership gives OpenAI the massive computing power it needs to advance AI technology for all consumers. This strategic deal provides world-class infrastructure with hundreds of thousands of chips — enabling rapid scaling and bringing cutting-edge AI benefits to millions of users and organizations worldwide.

Openai

Techno-skeptic narrative

OpenAI's massive deals with tech giants like Amazon are creating dangerous monopolistic power that threatens innovation. These trillion-dollar partnerships concentrate AI development in the hands of a few corporations, stifling competition and open-source alternatives. A small clique of mega corporations should not be allowed to control the future of AI.