Mon Nov 03 17:00:00 UTC 2025: ## OpenAI Inks $38 Billion Deal with Amazon for Cloud Computing Power

San Francisco, CA – Artificial intelligence powerhouse OpenAI has struck a deal with Amazon Web Services (AWS) for a massive $38 billion in cloud computing services over the next seven years. The agreement, announced Monday, marks a significant expansion of OpenAI’s computing infrastructure as it seeks to accelerate the development and deployment of its AI technologies, including the popular ChatGPT chatbot.

This deal comes shortly after OpenAI secured agreements with Nvidia, AMD, and Oracle for substantial computing power, signaling an aggressive move to bolster its resources amidst fierce competition in the AI landscape. The Amazon agreement is part of OpenAI’s drive to expand the already enormous pool of computing power that fuels its ambitions. OpenAI is also working to build new computer data centers with Oracle, the Japanese conglomerate SoftBank, the United Arab Emirates and others.To help fund the construction of the data centers, the company has also inked a complex set of deals with the chipmakers Nvidia, AMD and Broadcom.

Previously, OpenAI was bound by an agreement to exclusively purchase computing power from Microsoft, its primary investor, unless granted permission to work with other providers. However, that contract was recently renegotiated, freeing OpenAI to seek services from any cloud computing company without requiring Microsoft’s approval.

This latest move highlights the escalating investments in AI infrastructure across the tech industry. Amazon, Google, Meta, and Microsoft have collectively committed over $360 billion in capital expenditures over the last year.

However, this surge in investment has raised concerns among financial analysts and tech historians about a potential “AI bubble.” While companies like OpenAI are generating billions in revenue, the long-term profitability of AI technology remains uncertain.

(Disclosure: The New York Times has filed a lawsuit against OpenAI and Microsoft, alleging copyright infringement related to the use of news content in AI systems. OpenAI and Microsoft have denied these claims.)

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