OpenAI Signs $38 Billion Cloud Deal with Amazon
Key Points
- OpenAI finalizes a $38 billion multi‑year cloud deal with Amazon Web Services.
- AWS will provide thousands of NVIDIA GB200 and GB300 GPUs for model training and inference.
- The agreed capacity is slated for full deployment by the end of 2026, with extensions possible in 2027.
- The partnership follows OpenAI’s restructuring that removed a first‑right‑of‑refusal clause favoring Microsoft Azure.
- OpenAI’s annualized revenue is around $12 billion, alongside a $250 billion commitment to Azure services.
- The deal aims to support millions of ChatGPT users and accelerate next‑generation AI development.
- OpenAI maintains a revenue‑sharing agreement with Microsoft for potential AGI outcomes.
OpenAI announced a multi‑year cloud partnership with Amazon Web Services valued at $38 billion, ending its exclusive reliance on Microsoft’s Azure. The agreement grants AWS access to thousands of NVIDIA GB200 and GB300 GPUs for training and inference of OpenAI’s next‑generation models, with deployment slated for completion by the end of 2026 and options to extend into 2027. The move follows OpenAI’s recent corporate restructuring, which gave it the freedom to negotiate with competitors, and is expected to support millions of ChatGPT users while complementing OpenAI’s existing $12 billion annual revenue stream and its $250 billion Azure commitment.
Background and Corporate Restructuring
OpenAI recently concluded a drawn‑out corporate restructuring that granted the company greater flexibility in selecting cloud providers. Previously bound by a first‑right‑of‑refusal clause that favored Microsoft’s Azure platform, the restructuring allowed OpenAI to explore partnerships with competitors, notably Amazon Web Services (AWS).
The $38 Billion AWS Partnership
Amazon announced a multi‑year cloud agreement with OpenAI valued at $38 billion. Under the deal, AWS will supply OpenAI with access to thousands of NVIDIA GB200 and GB300 graphics processing units (GPUs) for both inference and training of its upcoming AI models. Amazon expects to have the agreed‑upon capacity fully deployed by the end of 2026, with the option to purchase additional capacity in 2027 and beyond.
The partnership is positioned as a means to help “millions of users continue to get value from ChatGPT,” according to Amazon’s statements. By leveraging AWS’s infrastructure and the latest NVIDIA GPU technology, OpenAI aims to accelerate the development and deployment of next‑generation artificial intelligence services.
Financial Context and Existing Commitments
OpenAI’s revenue generation is reported at approximately $12 billion on an annualized basis. The company’s restructuring agreement also includes a commitment to spend $250 billion on Azure services from Microsoft, maintaining a significant financial relationship with its former primary cloud provider. Additionally, OpenAI has a revenue‑sharing arrangement with Microsoft that will continue if and when the company achieves artificial general intelligence (AGI).
Strategic Implications
The new AWS partnership diversifies OpenAI’s cloud infrastructure, reducing reliance on a single provider and potentially enhancing resilience and scalability. It also reflects a broader industry trend where leading AI developers seek multiple cloud partners to meet the massive compute demands of modern models. For Amazon, the deal represents a substantial expansion of its AI‑focused cloud services, positioning AWS as a key player in the competitive landscape of AI infrastructure.