OpenAI Signs $38B AWS Deal for AI Computing Power

OpenAI and Amazon Web Services struck a $38 billion, seven‑year partnership that begins immediately and will give OpenAI access to “hundreds of thousands” of Nvidia GPUs and large amounts of AWS compute to run and scale its core AI workloads. The companies said capacity is targeted to be deployed before the end of 2026 with the ability to expand into 2027 and beyond. The deal follows OpenAI’s recent revision of its Microsoft partnership — freeing it to source cloud capacity from other providers — and comes after regulators cleared a new business structure to help OpenAI raise capital. The pact underscores hyperscalers’ scramble to supply generative‑AI firms as OpenAI has signaled huge partner spending (reported as more than $1.4 trillion over five years) while not yet explaining how it will fund those commitments, which has made some investors nervous. AWS has also moved to anchor AI startups on its platform (including prior investments in Anthropic), and markets reacted modestly to the news with Amazon shares up in premarket trading. The agreement signals intensified competition among cloud providers to capture the compute demand fueling rapid advances in AI.