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Key takeaways

• OpenAI has teamed up with AWS to power its efforts to build AGI.
• The deal is valued at $38 billion.
• Amazon shares reportedly hit an all-time high following the news.

OpenAI has entered into a multi-year strategic partnership with Amazon Web Services, enabling it to tap into the cloud services provider's infrastructure and compute resources as it ramps up its efforts to build artificial general intelligence (AGI).

Valued at $38 billion, the deal will go into effect "immediately," according to a Monday blog post from AWS, and is expected to scale up over the next seven years. 

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The partnership, announced less than a week after OpenAI finalized its structural transition into a nonprofit with a subsidiary for-profit arm, will give the company access to hundreds of thousands of Nvidia GB200 and GB300 semiconductors running on Amazon data clusters. 

The new organizational structure also means OpenAI has more leeway in its relationship with Microsoft, which, from 2019 to 2023, was its sole source of computing power. The revised agreement between the two companies now stipulates that OpenAI can partner with any cloud provider.

In addition to its new partnership with AWS, OpenAI has reportedly teamed up with Google, gaining access to the tech giant's cloud computing resources.

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(Disclosure: Ziff Davis, 's parent company, filed an April 2025 lawsuit against OpenAI, alleging it infringed Ziff Davis copyrights in training and operating its AI systems.)

A win for Amazon

OpenAI's agreement to run its model training and inference processes on AWS marks a major moment for Amazon's ambitions to become the leading cloud services provider for large-scale AI projects. Amazon's shares hit an all-time high on Monday following the news of the OpenAI partnership, according to Reuters.

"AWS has unusual experience running large-scale AI infrastructure securely, reliably, and at scale -- with clusters topping 500K chips," the tech company wrote in its blog post. "AWS's leadership in cloud infrastructure combined with OpenAI's pioneering advancements in generative AI will help millions of users continue to get value from ChatGPT."

AWS also announced earlier this year that OpenAI's open-weight models -- gpt-oss-120b and gpt-oss-20b -- had been added to Amazon Bedrock, making them available to millions of AWS customers looking to build their own, custom models for tasks like coding and scientific analysis.

Expanding energy needs

The race among tech developers to build new AI systems has driven growing energy demand, prompting many of those companies to invest vast sums in GPUs and the construction of new data centers.

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In September, OpenAI announced it would open five new data centers distributed across Texas, New Mexico, Ohio, and an undisclosed location in the Midwest, which would cumulatively provide up to seven gigawatts of power -- well over half of the total energy supply the company aims to secure by the end of this year through Project Stargate, the AI infrastructure plan OpenAI launched in January alongside the Trump administration, Oracle, SoftBank, and Emirati investment firm MGX.

Those industry-wide efforts to secure ever-expanding reserves of power for AI have also made Nvidia the wealthiest company in the world (by a significant margin) as it's cemented something close to a monopoly over the GPU market. Hoping to reduce its reliance on Nvidia, OpenAI will reportedly begin producing its own proprietary chips sometime next year in partnership with American semiconductor manufacturer Broadcom.

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