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OpenAI signed a massive $38 billion deal with Amazon Web Services (AWS) to access huge computing power using Nvidia chips. Amazon’s stock reacted with a 4% rise, hitting a record high
This is OpenAI’s first-ever partnership with Amazon and a big move toward becoming less dependent on Microsoft.
Breaking it down: under the deal, OpenAI will run its AI workloads on AWS data centers across the US, using hundreds of thousands of Nvidia GPUs. Over time, Amazon will build new infrastructure for OpenAI to handle growing AI demands.
This deal also adds to OpenAI’s growing list of partnerships worth nearly $1.4 trillion, including deals with Nvidia, Broadcom, Oracle, and Google.
“Scaling frontier AI requires massive, reliable compute,” said Sam Altman, CEO of OpenAI. “Our partnership with AWS strengthens the broad compute ecosystem that will power this next era and bring advanced AI to everyone.”
OpenAI’s shift: for years, the company relied almost entirely on Microsoft’s cloud platform, Azure, after receiving over $13 billion in funding from the tech giant. But that exclusivity ended earlier this year, freeing OpenAI to work with other big cloud providers like Oracle, Google, and now Amazon.
Zoom out: Nvidia’s rise tells the other half of this story. Its revenue from data centers, up a staggering 427% year-on-year, shows how the AI boom is now powered by massive cloud deals like OpenAI’s $38B tie-up with Amazon.
