OpenAI has signed a $38 billion contract with Amazon for cloud computing services, crucial for scaling AI operations. This partnership highlights the escalating demand for computational power in AI development.

OpenAI has finalized a $38 billion contract with Amazon to leverage its cloud computing capabilities, particularly focusing on Nvidia graphics processors essential for training AI models. This seven-year agreement is part of a larger strategy by OpenAI, which has recently transitioned from a non-profit to a more flexible operational model, allowing it to pursue substantial partnerships. In 2025 alone, OpenAI has secured deals exceeding $1 trillion with major companies like Oracle, Broadcom, AMD, and Nvidia. The partnership with Amazon Web Services (AWS) is seen as a critical move to meet the soaring demand for computational power driven by the rapid advancements in AI technology. Following the announcement, Amazon's stock surged, adding $140 billion to its market valuation, reflecting investor optimism about the future of AI and cloud computing.