OpenAI has announced a new partnership to power its AI tools using “hundreds of thousands” of Nvidia’s specialized AI chips through Amazon Web Services (AWS). The deal, revealed on Monday, led to a 4% increase in Amazon’s shares.
This agreement comes shortly after OpenAI made significant changes to its longstanding partnership with Microsoft. Until early this year, Microsoft was OpenAI’s exclusive cloud computing provider. In a related development, regulators in California and Delaware recently approved OpenAI’s plan to restructure its business. Founded as a nonprofit, OpenAI aims to establish a new business model that will enable it to raise capital more easily and generate profits.
Amazon emphasized the growing demand for computing power, stating, “The rapid advancement of AI technology has created unprecedented demand for computing power.” According to their 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.”
AI technology requires enormous amounts of energy and computing resources. OpenAI has long indicated the need for expanded capacity to both develop new AI systems and maintain existing products, such as ChatGPT, which serves hundreds of millions of users globally.
To meet these demands, OpenAI has committed to more than $1 trillion in financial obligations for AI infrastructure spending. This includes data center initiatives with Oracle and SoftBank, as well as semiconductor supply agreements with major chipmakers like Nvidia, AMD, and Broadcom.
Some investors have expressed concerns about these deals, describing them as “circular” in nature. Since OpenAI currently does not turn a profit, there are questions about its ability to pay for the infrastructure provided by its cloud partners, who are investing based on expected future returns.
Addressing these concerns, OpenAI CEO Sam Altman dismissed the skepticism as “breathless concern.” During a podcast appearance with Microsoft CEO Satya Nadella, Altman stated, “Revenue is growing steeply. We are taking a forward bet that it’s going to continue to grow.”
This new partnership with AWS marks a significant step for OpenAI as it continues to scale its AI capabilities and expand its infrastructure to meet the evolving demands of AI technology.
https://fortune.com/2025/11/03/openai-38-billion-deal-nvidia-ai-chips-amazon-web-services/
