Amazon Web Services announced a landmark $38 billion agreement with OpenAI on Monday, securing the artificial intelligence company’s commitment to use hundreds of thousands of Nvidia chips through AWS infrastructure over the next seven years.
The deal marks OpenAI’s most significant departure from Microsoft, which had served as the company’s primary cloud provider since their partnership began in 2019. Microsoft revised its exclusive arrangement with OpenAI earlier this year, opening the door for competitors.
Under the agreement, OpenAI gains immediate access to AWS’s fleet of Nvidia processors, including the latest GB200 and GB300 Blackwell models. Amazon committed to deploying the full capacity by the end of 2026, with options to expand through 2027 and beyond.
Wall Street responded enthusiastically to the announcement, pushing Amazon shares up approximately 5% in Monday trading.
The partnership represents a major victory for AWS in the intensifying competition for AI workload hosting among cloud providers.
“This infrastructure will support our mission to ensure artificial general intelligence benefits all of humanity,” an OpenAI spokesperson said in a statement, though the company declined to specify which products would migrate to AWS infrastructure.
Industry analysts view the deal as a watershed moment in cloud computing, signaling that even the closest tech partnerships remain fluid as AI companies seek the massive computational resources required for next-generation models.
The agreement positions Amazon as a critical player in OpenAI’s infrastructure strategy while providing the e-commerce giant with a high-profile AI customer to showcase its cloud capabilities.
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