With AI cloud deals going on at breakneck speed, it is now OpenAI’s turn to announce. The Sam Altman-led AI juggernaut has signed a massive $38 billion cloud computing deal with Amazon Web Services (AWS) to power its artificial intelligence systems over the next several years. The latest agreement will make AWS a key infrastructure partner for the ChatGPT maker, providing the company with large-scale computing power to train and run its advanced AI models. Importantly, this deal is one of the biggest cloud contracts ever made, and it marks a major expansion of OpenAI’s technology partnerships beyond Microsoft (which also closed a $9.7 billion AI cloud deal with Australia-based IREN to expand its GPU capacity).
According to the companies, the agreement spans multiple years, with the Sam Altman-led company committing at least $38 billion in spending on AWS infrastructure and services. The plan includes using Amazon’s vast network of data centers and Nvidia-powered GPUs to handle the massive computational demands required for developing and operating large language models (LLMs). Migration of OpenAI’s workloads to AWS is expected to begin immediately, with full implementation targeted by the end of 2026. And this deal also includes provisions allowing OpenAI to expand its usage further through 2027 and beyond as its products and customer base grow.
This partnership gives the AI trendsetter access to cutting-edge computing hardware, including Nvidia’s latest H200 and B-series GPUs, which AWS operates at scale. These chips are essential for training massive AI models like GPT-5 and future generations. At the same time, for Amazon, the deal represents a significant boost to its cloud business, which competes closely with Microsoft Azure and Google Cloud for dominance in the AI infrastructure market.
The development is significant because, for years, OpenAI relied heavily on Microsoft’s Azure platform, which had exclusive rights to host and distribute its AI models through the Azure OpenAI Service. However, OpenAI recently announced that it has completed its transition to a for-profit structure. The company has reorganized as a public benefit corporation (PBC) while remaining under the oversight of the OpenAI Foundation. And under this new arrangement, the AI firm can now partner with and use other cloud providers as well.
But despite these developments, the timing of the $38 billion deal is crucial, as the AI giant is already facing significant financial pressure. The company continues to operate at a loss due to the huge costs associated with training and maintaining large-scale AI systems. These expenses include data processing, chip procurement, and cloud infrastructure. Even OpenAI is projected to spend around $350 billion on server rentals from cloud providers by 2030. In parallel, AWS is also not free from challenges and controversies. In October 2025, the cloud giant suffered a major outage in its US-EAST-1 region that disrupted a wide range of global services, including popular platforms like Fortnite, Snapchat, and Alexa. Earlier, in July 2025, AWS had announced layoffs affecting hundreds of employees as part of cost-cutting and restructuring efforts amid slowing revenue growth.
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