Amazon Web Services (AWS) and artificial intelligence firm OpenAI have signed a major $38 billion, seven-year agreement. This deal provides OpenAI with extensive cloud computing resources, including hundreds of thousands of Nvidia graphics processing units (GPUs), to power its advanced AI models like ChatGPT. The companies announced the partnership on Monday, November 3, 2025.^{[1][2][3][4][5][6][7][8][9][10]} ### Massive Compute Power for OpenAI Under the terms of the new agreement, OpenAI will immediately gain access to AWS's world-class infrastructure.^{[1][6][8][9][10]} This includes a vast supply of Nvidia GPUs, specifically the latest GB200 and GB300 AI accelerators.^{[3][11][6][9][10]} OpenAI also has the option to expand its access to tens of millions of central processing units (CPUs) from AWS.^{[2][6][8][10]} These resources are crucial for training and running OpenAI's sophisticated AI models, enabling them to generate faster and more complex responses.^{[1][3][4][11][6][7][10]} All targeted capacity is expected to be fully deployed by the end of 2026, with further expansion possibilities into 2027 and beyond.^[6][10] OpenAI Chief Executive Sam Altman emphasized the need for robust computing power. "Scaling frontier AI requires massive, reliable compute," Altman said.^{[2][4][11][6][7][9]} He added that the partnership with AWS strengthens the broad compute ecosystem needed for the next era of AI, bringing advanced AI to everyone.^[2][6][7][9] Matt Garman, the chief executive of AWS, affirmed Amazon's commitment. He stated that AWS's infrastructure would serve as a backbone for OpenAI's AI ambitions as the company continues to push boundaries.^{[1][2][4][5][11][7][9]} ### Expanding AI Infrastructure This $38 billion deal is part of OpenAI's broader strategy to secure massive computing resources. The company has committed to spending an estimated $1.4 trillion on AI infrastructure in total.^{[1][3][4][5][11]} This unprecedented investment highlights the AI industry's insatiable demand for processing power.^[3][4] The agreement with AWS also signals a significant shift in OpenAI's cloud strategy. It formally ends its previous exclusive reliance on Microsoft Azure for core cloud infrastructure.^[8][9] OpenAI has been actively forging multiple large-scale infrastructure partnerships. In addition to AWS, the company has deals with other major players. This includes a $250 billion incremental commitment with Microsoft for Azure services.^[2][8][9] OpenAI also has a $300 billion agreement with Oracle for data centers^[4][5][9] and a $22.4 billion deal with CoreWeave.^[4][5] Earlier this year, OpenAI also disclosed that Google Cloud Platform was among its providers.^[4] The company recently announced a partnership with AMD to build a 6-gigawatt system using hundreds of thousands of AMD chips.^[12] ### Market Reaction and Industry Impact The announcement of the AWS-OpenAI deal had an immediate impact on the stock market. Amazon shares rose by approximately 4% to 6% in early trading on Monday, reaching an all-time high.^{[2][3][4][5][11][7][8]} This surge reflects investor confidence in AWS's ability to attract major AI workloads.^{[3][5][11][8]} For Amazon, the deal is a significant endorsement of its cloud unit's capacity to build and operate extensive data center networks.^[4][5][11] AWS reported accelerated growth of 20% in the third quarter, exceeding analyst expectations.^[8] The race for computing power among AI companies has raised some concerns among market watchers. There are worries about a potential "AI bubble" forming due to the massive investments in infrastructure.^{[1][3][4][5][11][7][12]} Despite these concerns, OpenAI remains confident in the economic value its research and future models will generate.^[12] This multi-cloud strategy allows OpenAI to balance costs, access specialized chips, and ensure platform resilience.^[9] This partnership underscores the critical role of cloud providers and chip manufacturers like Nvidia in the rapidly expanding artificial intelligence sector. It highlights the immense demand for advanced computing power needed to develop and scale next-generation AI technologies.