OpenAI Signs $38B AWS Deal

OpenAI and Amazon Web Services signed a seven-year, $38 billion agreement giving OpenAI immediate access to hundreds of thousands of Nvidia GPUs on AWS EC2 UltraServers, including GB200/GB300 chips, with most capacity targeted for deployment by the end of 2026 and room to expand into 2027; the deal also includes plans to scale compute capacity to tens of millions of CPUs. The contract — one of the largest cloud agreements ever — cements AWS’s central role in supplying the massive, reliable compute needed for next-generation AI models. News of the partnership sent Amazon shares to record highs, boosting Jeff Bezos’s net worth by billions. The agreement follows OpenAI’s recent restructuring that loosened Microsoft’s exclusivity and comes amid a torrent of other multibillion-dollar chip and cloud deals involving Nvidia, Oracle, Broadcom, CoreWeave and AMD. Analysts say the spree is reshaping global AI infrastructure while raising concerns about enormous capital commitments and a possible market bubble; OpenAI CEO Sam Altman and AWS leaders have framed the tie-up as essential to scaling “frontier AI,” and Altman has defended the company’s aggressive compute and spending plans amid questions about financing.