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Reading: OpenAI Signs $38 Billion Cloud Deal with Amazon AWS for AI Compute
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OpenAI and AWS
PhotoNews Pakistan > Tech > OpenAI Signs $38 Billion Cloud Deal with Amazon AWS for AI Compute
Tech

OpenAI Signs $38 Billion Cloud Deal with Amazon AWS for AI Compute

Web Desk
By Web Desk Published November 3, 2025 3 Min Read
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OpenAI and AWS Emblem. Image Credit: OpenAI / AWS
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OpenAI has signed a landmark seven-year agreement with Amazon Web Services (AWS) valued at $38 billion. The deal significantly expands the AI firm’s access to critical computing power, despite OpenAI’s partial ownership by Microsoft, Amazon’s primary cloud rival.

The partnership grants OpenAI extensive resources on the AWS cloud platform, including hundreds of thousands of advanced Nvidia GPUs—the essential processors driving the generative AI revolution. The agreement also provides access to tens of millions of conventional CPUs for deploying everyday AI applications.

OpenAI CEO Sam Altman emphasised the necessity of reliable, large-scale computing for AI development. “Scaling frontier AI requires massive, reliable compute,” Altman stated. “Our partnership with AWS strengthens the broad compute ecosystem that will power this next era and bring advanced AI to everyone.”

The company will begin utilising AWS computing resources immediately, with plans to fully deploy the contracted capacity by the end of 2026. The deal includes provisions for further expansion in subsequent years.

The seven-year deal, which takes OpenAI’s total recent commitments to close to $1.5tn, will allow OpenAI to make immediate use of AWS infrastructure to run its products, including ChatGPT. https://t.co/MZxt9XbpaN pic.twitter.com/3Ovb5ummuh

— Financial Times (@FT) November 3, 2025

This agreement is part of OpenAI’s significant infrastructure investment in 2025. Industry estimates suggest the company has secured approximately $1 trillion in compute deals this year, including a $300 billion arrangement with Oracle and a $500 billion “Stargate” project involving Oracle and SoftBank.

This massive investment comes as OpenAI’s 2025 revenues are projected to reach tens of billions of dollars—a substantial figure for a startup, but still insufficient to immediately cover the immense costs of the computing power required for its advanced AI models.

Read: OpenAI Plans $1 Trillion IPO in Landmark Public Listing, Sources Say

The AWS deal marks the first major partnership since OpenAI finalised its new corporate structure, which provides greater flexibility to operate as a for-profit entity and deliver returns to its investors. The collaboration builds upon existing ties between the companies, with several of OpenAI’s open-source models already available on Amazon’s cloud servers.

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