OpenAI signs $38 billion deal with Amazon Web Services to power its AI tools using Nvidia chips and US-based data centres until 2026.
SEATTLE: OpenAI and Amazon Web Services have signed a landmark $38 billion agreement that will allow OpenAI to run its artificial intelligence models on Amazon’s cloud infrastructure, significantly boosting its computing power. The deal gives OpenAI access to “hundreds of thousands” of Nvidia’s high-performance AI chips through AWS, with immediate rollout and full deployment targeted before the end of 2026.
Amazon confirmed the agreement in a statement Monday, saying, “The rapid advancement of AI technology has created unprecedented demand for computing power.” The deal includes the ability to expand even further into 2027 and beyond, depending on usage and infrastructure needs.
This move marks a strategic shift in the AI infrastructure race. Amazon, traditionally behind rivals like Microsoft in terms of high-profile AI partnerships, now secures a significant win by onboarding OpenAI — the developer behind ChatGPT — to its cloud services. The agreement strengthens Amazon’s position in AI cloud services at a time when compute scalability is key to powering large language models and next-generation AI systems.
The massive value of the deal also reflects OpenAI’s increasing reliance on massive computing power to train, deploy and scale its AI platforms globally. It underscores the growing arms race between cloud providers to become the go-to backbone for AI development and deployment.
Industry analysts say the deal will shape the trajectory of how AI services are delivered in the future, as compute access becomes the lifeblood of AI innovation. The OpenAI-Amazon partnership could potentially influence global standards around AI scalability, cost, and availability.
