In a groundbreaking announcement from San Francisco on November 3, 2025, OpenAI has officially signed a $38 billion, seven-year cloud partnership with Amazon, signalling a historic shift in the global AI and cloud computing industry. Under the agreement, OpenAI will run its expanding ChatGPT workloads on Amazon Web Services (AWS) across the United States, utilizing thousands of Nvidia GPUs to accelerate AI training and deployment. This major move represents OpenAI’s strategic diversification beyond Microsoft Azure, establishing a dual-cloud strategy that enhances scalability and innovation. With Sam Altman, CEO of OpenAI, and Andy Jassy, CEO of Amazon, leading the initiative, the partnership underscores both companies’ commitment to shaping the next era of artificial intelligence — merging cutting-edge research, infrastructure, and enterprise-grade cloud performance in one transformative alliance.
Key Highlights
- Deal Value: $38 billion over seven years
- Partners: OpenAI and Amazon Web Services (AWS)
- Purpose: To power AI model training with high-performance Nvidia chips
- Timeline: Full capacity operational by 2026, expansion through 2027
- Market Impact: Amazon’s stock surged by 4.7% following the announcement
Inside the $38 Billion OpenAI–Amazon Cloud Deal
The agreement grants OpenAI access to hundreds of thousands of Nvidia GB200 and GB300 AI accelerators, providing the computing power required to train next-generation models such as GPT-5 and beyond.
Amazon’s data clusters will be specially built to handle these workloads, while OpenAI will immediately begin integrating AWS infrastructure into its AI training pipelines.
According to Sam Altman, CEO of OpenAI,
“Scaling frontier AI requires massive, reliable compute. Our partnership with AWS strengthens the broad compute ecosystem that will power this next era and bring advanced AI to everyone.”
The deployment of this infrastructure is expected to be completed by the end of 2026, with room for expansion in 2027 and beyond.
OpenAI’s Cloud Evolution: From Microsoft to Amazon
| Year | Cloud Partner | Deal Summary & Key Highlights |
|---|---|---|
| 2019 | Microsoft Azure | Deal Value: ≈ $10 billion (investment + cloud credits) Purpose: To provide exclusive infrastructure for developing and training ChatGPT and GPT-3 models. Key Highlights: Microsoft became OpenAI’s strategic investor and exclusive cloud provider, deeply integrating OpenAI’s models into Azure AI, Bing, and Office 365 ecosystems — a move that established the foundation of the commercial AI revolution. |
| 2021 | Microsoft Azure (Expansion) | Deal Value: Undisclosed multi-billion extension. Purpose: Scale compute power for GPT-4 and enterprise deployment through Azure OpenAI Service. Key Highlights: Strengthened the OpenAI–Microsoft alliance, enabling businesses worldwide to access ChatGPT through Azure’s enterprise-grade infrastructure. |
| 2024 | Google Cloud | Deal Value: ≈ $300 billion (5-year strategic partnership). Purpose: Diversify AI training workloads beyond Azure, focusing on Google TPU clusters for model scaling and cross-cloud resilience. Key Highlights: Marked a major multi-cloud strategy shift, enhancing training speed, reducing latency, and optimizing large-scale model experiments. |
| 2025 (Nov 3) | Amazon Web Services (AWS) | Deal Value: $38 billion (7-year cloud deal). Purpose: Power core AI training using Nvidia GB200/GB300 GPUs on AWS infrastructure across the United States. Key Highlights: A transformational diversification move, positioning OpenAI to leverage Amazon’s compute ecosystem while boosting AWS’s competitiveness in the AI cloud race. Led by Sam Altman (OpenAI CEO) and Andy Jassy (Amazon CEO), this partnership reshapes the global AI landscape. |
Key Details of the OpenAI Amazon $38 Billion AI Deal
- Scope: Seven-year partnership to host AI workloads on AWS.
- Hardware: Access to hundreds of thousands of Nvidia GB200/GB300 GPUs, with potential expansion to millions of CPUs.
- Strategic Impact: Reduces OpenAI’s reliance on Microsoft Azure and strengthens AWS’s position against Microsoft and Google in AI cloud services.
- Economic Impact: Estimated to contribute significantly to AWS revenue growth and long-term cloud market share.
- Environmental Consideration: AI data centers are projected to consume up to 12% of U.S. electricity by 2028, highlighting the energy implications of massive AI workloads.
Why This Deal Matters
This partnership represents far more than just a business move; it’s a strategic realignment of global AI power.
- Diversification from Microsoft: OpenAI’s restructuring removed Microsoft’s first right of refusal, enabling collaborations with other cloud providers like Amazon, Google, and Oracle.
- Boost for AWS: The deal repositions Amazon as a strong competitor in the cloud AI market after lagging behind Azure and Google Cloud.
- AI Compute Expansion: OpenAI plans to invest $1.4 trillion to build 30 gigawatts of computing resources, roughly enough to power 25 million U.S. homes.
Industry Impact and Expert Analysis
| Provider | Current AI Cloud Market Share (2025) | Projected 2026 Share (Post-Deal) |
| Microsoft Azure | 41% | 38% |
| Google Cloud | 27% | 24% |
| Amazon AWS | 22% | 33% |
| Oracle & Others | 10% | 5% |
Experts say the deal positions AWS as a leader in AI infrastructure, forcing cloud competitors to scale faster. PP Foresight analyst Paolo Pescatore notes:
“This deal validates AWS as a true leader in AI compute scale. The AI race is now as much about energy, infrastructure, and chips as it is about algorithms.”
Timeline and Future Outlook
- 2025: Deal announced and initial rollout begins
- 2026: Full operational capacity across AWS
- 2027+: Expansion with future Nvidia and Amazon custom chips
The collaboration ensures that OpenAI’s next wave of models — likely more advanced than GPT-5 — will have unmatched scalability and reliability.
Conclusion
The $38 billion OpenAI–Amazon cloud alliance, signed on November 3, 2025, in the United States, represents a monumental leap toward the future of AI innovation, chatbot evolution, and cloud computing. Led by OpenAI CEO Sam Altman and Amazon CEO Andy Jassy, this seven-year partnership empowers OpenAI to build the next generation of ChatGPT models using AWS infrastructure and Nvidia GB200/GB300 GPUs. Beyond expanding OpenAI’s reach beyond Microsoft Azure, this collaboration sets the stage for faster, smarter, and more interactive AI assistants, reshaping industries from enterprise automation to everyday communication. As AI chatbots evolve into more human-like digital companions, this deal cements Amazon and OpenAI as driving forces in the coming era of intelligent cloud ecosystems. Stay with Tech Searchers for future-focused AI insights and updates.
Frequently Asked Questions
What is the OpenAI–Amazon $38 Billion AI Deal about?
The deal, signed on November 3, 2025 in the United States, is a seven-year, $38 billion partnership. It lets OpenAI run its AI workloads on Amazon Web Services (AWS) using hundreds of thousands of Nvidia GPUs to develop the next-generation ChatGPT models.
Why did OpenAI choose AWS instead of Microsoft Azure?
OpenAI wanted to diversify its cloud infrastructure. Using AWS gives more flexibility, scalability, and compute power, while still keeping Microsoft Azure as a partner.
When will OpenAI start using AWS infrastructure?
OpenAI started deployment immediately after signing the deal. Full capacity is planned by late 2026, with further expansion in 2027.
What are the environmental implications of this deal?
AI data centers use a lot of energy. By 2028, U.S. AI data centers may consume up to 12% of electricity, highlighting the need for sustainable cloud energy solutions.
Who are the key leaders behind this partnership?
The deal is led by Sam Altman, CEO of OpenAI, and Andy Jassy, CEO of Amazon, driving the future of AI innovation and cloud computing.
