OpenAI-Amazon cloud deal: OpenAI seals $38 billion deal with Amazon for AI computing power; Microsoft exclusivity ends

OpenAI has signed a $38 billion agreement with Amazon to run its artificial intelligence systems on Amazon Web Services (AWS), gaining access to “hundreds of thousands” of Nvidia’s AI chips through the deal announced Monday, AP reported.

The partnership comes just days after OpenAI revised its arrangement with longtime backer Microsoft, which will no longer remain the startup’s exclusive cloud provider.

Regulators in California and Delaware recently cleared OpenAI’s plan to shift from its nonprofit structure to a new business model designed to raise capital more freely and operate for profit.

“The rapid advancement of AI technology has created unprecedented demand for computing power,” Amazon said in a statement. “OpenAI will immediately start utilizing AWS compute as part of this partnership, with all capacity targeted to be deployed before the end of 2026, and the ability to expand further into 2027 and beyond,” the company added.