Amazon AWS Secures $38B OpenAI Cloud Deal With Nvidia Chips

Amazon Web Services (AWS) has secured a landmark $38 billion, seven-year deal to supply cloud computing capacity to OpenAI, marking a significant shift in OpenAI's cloud infrastructure strategy away from its longtime partner Microsoft. This strategic partnership enables OpenAI to access hundreds of thousands of Nvidia's advanced AI GPUs via AWS, facilitating the scaling of its AI workloads, including ChatGPT, with capacity expected to be fully deployed by the end of 2026. The deal has reignited bullish investor sentiment in Amazon, driving its stock to record highs due to renewed confidence in AWS’s role in powering the next era of generative AI advancements. Industry experts view OpenAI’s diversification across multiple cloud providers, including AWS, Oracle, and Google Cloud, as a deliberate move to mitigate risk, enhance operational flexibility, and leverage competitive pricing and capacity allocation. This expansion reflects OpenAI's broader ambition to build a resilient, vertically integrated AI industrial platform, positioning AI infrastructure as a foundational economic resource akin to traditional industrial commodities. The partnership underscores the accelerating demand for large-scale, reliable compute power essential for AI development and deployment, highlighting AWS's critical role in this evolving ecosystem.