Summary: Amazon has signed a seven-year, US$38 billion (A$58.1 billion) agreement with OpenAI, granting the ChatGPT maker access to massive computing power through Amazon Web Services (AWS). The deal, one of the largest in the AI sector to date, sent Amazon shares to a record high, underscoring the surging demand for advanced cloud infrastructure to power artificial intelligence.
Seattle, November 4, 2025 — Amazon shares climbed to an all-time high on Monday after the company announced a landmark US$38 billion deal with OpenAI, the developer of ChatGPT. The agreement will see OpenAI run its artificial intelligence systems on AWS data centres, leveraging hundreds of thousands of NVIDIA’s most advanced AI chips.
Deal Details
The seven-year contract provides OpenAI with unprecedented access to AWS’s global infrastructure, including NVIDIA’s GB200 and GB300 accelerators, to train and operate its next-generation AI models. The partnership marks OpenAI’s first major shift away from exclusive reliance on Microsoft Azure, diversifying its cloud providers at a time of soaring demand for compute power.
Amazon said the deal reflects the “unprecedented demand for computing power” driven by rapid advances in AI. OpenAI CEO Sam Altman described the partnership as essential to scaling frontier AI, noting that the company plans to invest heavily in expanding its computing capacity to support increasingly complex models.
Market Reaction
News of the agreement sent Amazon’s stock up more than 4%, reflecting investor confidence in AWS’s ability to capture a larger share of the booming AI infrastructure market. Analysts said the deal positions Amazon as a central player in the global race to provide the computing backbone for artificial intelligence.
Strategic Significance
- For OpenAI: The deal secures long-term access to critical compute resources, ensuring stability for its expanding suite of AI products.
- For Amazon: It strengthens AWS’s competitive edge against Microsoft and Google in the cloud market.
- For NVIDIA: The agreement underscores its dominance in AI hardware, as its GPUs remain the industry standard for training large-scale models.
Outlook
The partnership is expected to accelerate OpenAI’s ability to deploy new AI systems while boosting AWS’s role in the global AI ecosystem. With capacity expected to come online through 2026 and beyond, the deal highlights both the opportunities and the escalating costs of powering next-generation artificial intelligence.
In short: Amazon’s US$38 billion, seven-year deal with OpenAI marks a turning point in the AI infrastructure race, lifting its shares to record highs and cementing AWS’s role as a critical provider of computing power for frontier AI.
Sources: Yahoo Finance Yahoo Finance UK; Computing.co.uk Computing; CNBC CNBC; RTÉ RTÉ.
