Amazon Web Services (AWS) has entered into a landmark $38 billion deal with OpenAI to provide large-scale cloud computing infrastructure powered by Nvidia graphics processors, marking one of the biggest AI infrastructure partnerships to date.
The seven-year agreement, announced on Monday, will give OpenAI access to hundreds of thousands of Nvidia GPUs through AWS data centers worldwide — further strengthening OpenAI’s capacity to build and run next-generation AI models like ChatGPT.
OpenAI Expands Its Compute Network
The deal signals OpenAI’s rapid evolution from a research organization to a commercial AI powerhouse. The company has reportedly committed over $1.4 trillion in infrastructure spending to support the growth of its AI systems — a scale that has raised questions about sustainability and potential over-investment in the sector.
“Scaling frontier AI requires massive, reliable compute,” said Sam Altman, CEO of OpenAI. “Our partnership with AWS strengthens the compute ecosystem that will power this next era and bring advanced AI to everyone.”
AWS Strengthens Its AI Ambitions
For Amazon, the partnership is a major step toward reclaiming ground in the competitive AI cloud market. “As OpenAI continues to push the boundaries of what’s possible, AWS’s best-in-class infrastructure will serve as the backbone for their AI ambitions,” said Matt Garman, CEO of AWS.
Following the announcement, Amazon’s stock rose 4.5%, while Nvidia gained 3.3% in early trading.
Intense Cloud Wars in AI Industry
The AWS–OpenAI deal comes as tech giants race to secure AI cloud dominance.
Microsoft, OpenAI’s largest investor, recently extended a $250 billion Azure contract with the company.
Oracle and Google Cloud also signed $300 billion and $22.4 billion agreements, respectively.
AI infrastructure firm CoreWeave has a $22.4 billion deal with OpenAI to provide specialized compute support.
Industry analysts say adding AWS as a provider could help OpenAI ease global infrastructure constraints and expand faster across regions where Amazon already operates vast data center networks.
Nvidia Chips Power the Partnership
Under the new deal, AWS will deploy Nvidia’s latest GB200 and GB300 AI accelerators to enhance OpenAI’s compute capabilities. These chips will help power ChatGPT’s responses, train future AI models, and support international AI research operations by 2026.
A Growing AI Ecosystem
Amazon is also a major backer of Anthropic, another leading AI firm founded by former OpenAI employees. Last week, AWS announced the completion of a dedicated data center complex for Anthropic, powered by Trainium2 AI chips, while Google also revealed a deal to supply 1 million AI chips to Anthropic.
Conclusion
This $38 billion deal not only cements Amazon’s position as a key player in the global AI infrastructure race but also provides OpenAI with the computing power required to sustain its explosive growth and innovation in artificial intelligence.
