OpenAI signs massive AI compute deal with Amazon

OpenAI signed a seven year, $38 billion agreement to buy cloud services from Amazon Web Services, gaining access to hundreds of thousands of Nvidia chips to train and run models behind ChatGPT and Sora. Use begins immediately, with planned capacity online by end of 2026 and room to expand in 2027. Amazon shares hit a record on the news as Microsoft briefly dipped. The deal follows a restructuring that removed Microsoft’s right of first refusal to supply compute, while OpenAI’s costs climb, revenue nears $20 billion, and a possible $1 trillion IPO takes shape.

Reviewed by JQJO team

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