Home / Business and Economy / OpenAI Inks $38 Billion Deal with Amazon for Cloud Computing Services
OpenAI Inks $38 Billion Deal with Amazon for Cloud Computing Services
3 Nov
Summary
- OpenAI to use Amazon Web Services for cloud computing, with capacity set to expand by 2026
- Amazon stock price jumps 5% after the deal announcement
- OpenAI CEO Sam Altman commits $1.4 trillion to develop 30 gigawatts of computing resources
On November 3, 2025, OpenAI, the artificial intelligence company behind the popular ChatGPT chatbot, announced a landmark $38 billion deal with Amazon to use the tech giant's cloud computing services. Under the multi-year agreement, OpenAI will begin using Amazon Web Services (AWS) immediately, with plans to have all its planned capacity set to come online by the end of 2026.
The deal represents a significant boost for Amazon, as the company's stock price jumped close to 5% on the news, with AMZN stocks trading at $256.41. The agreement underscores the AI industry's insatiable appetite for computing power, driven by the pursuit of technology capable of matching or surpassing human intelligence.
OpenAI CEO Sam Altman has also revealed that the company is committed to spending $1.4 trillion to develop 30 gigawatts of computing resources. This massive investment highlights the scale of OpenAI's ambitions and the importance of securing reliable and scalable cloud infrastructure to support its AI models.
The deal with Amazon represents a pivotal moment in OpenAI's relationship with Microsoft, its biggest backer. The company has been making moves to reduce its reliance on Microsoft, having already tapped Alphabet's Google and Oracle to supply cloud services.
