Amazon Web Services (AWS) and OpenAI have announced a $38 billion multi-year strategic partnership to expand OpenAI’s compute capacity and scale its next-generation AI workloads.
What the Partnership Means
Under this seven-year agreement, OpenAI will leverage AWS’s world-class cloud infrastructure—featuring hundreds of thousands of state-of-the-art NVIDIA GPUs—to power and scale advanced AI models, including ChatGPT and future agentic systems.
The partnership gives OpenAI access to Amazon EC2 UltraServers capable of scaling to tens of millions of CPUs, ensuring high performance, cost efficiency, and strong security. The new deployment will be completed before the end of 2026, with further expansion planned into 2027 and beyond.
Statements from Leaders
OpenAI CEO Sam Altman said, “Scaling frontier AI requires massive, reliable compute. Our partnership with AWS strengthens the broad compute ecosystem that will power this next era and bring advanced AI to everyone.”
Matt Garman, CEO of AWS, added, “As OpenAI continues to push the boundaries of what’s possible, AWS’s best-in-class infrastructure will serve as a backbone for their AI ambitions.”
Technical Details
The AWS infrastructure for OpenAI features clusters of NVIDIA GB200 and GB300 GPUs connected via EC2 UltraServers, enabling low-latency and high-performance AI processing. This setup supports a range of workloads—from training next-gen AI models to serving inference for ChatGPT—offering flexibility as OpenAI’s needs evolve.
Broader Impact
This agreement extends the collaboration between the two companies, following the availability of OpenAI’s foundation models on Amazon Bedrock earlier this year. Thousands of organizations—like Peloton, Comscore, Thomson Reuters, and Verana Health—are already using these models for AI-driven workflows.
Market Reaction
- Amazon shares rose 4.5% to a record high after the announcement.
- NVIDIA shares gained 3.5% as demand for GPUs surged following both this deal and Microsoft’s recent export license approval for NVIDIA chips.
Why It Matters
This partnership underscores how rapidly growing AI innovation is fueling record levels of demand for cloud and GPU infrastructure. With AWS providing unmatched scalability and OpenAI advancing cutting-edge AI, this collaboration aims to power the next era of intelligent computing.
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